West Virginia Record

Wednesday, October 23, 2019

Resource company co-founder sues to claim control of company's stock from CEO

Lawsuits

By Carrie Bradon | Sep 17, 2019


FAYETTEVILLE – Jon Nix, who founded Active Resources Inc. with Jack Hagewood, said Hagewood agreed to sell him all 40 million shares of the company – but then sent those shares to the company CEO instead.

Nix filed a complaint in Fayette Circuit Court against Jack Hagewood, Glacier Resources LLC, Active Resources Inc. and Tyler Kerrigan, the CEO, who Nix said interfered in the sale to save his job.

Nix agreed to purchase the stock, royalty interests on an estimated 18 million mineable tons and $20 million in debts for $1 million in late July, the lawsuit said. Hagewood, which owned the stock under his company Glacier Resources LLC, agreed, the lawsuit said.

Nix drew up the contract of sale, but Hagewood instead transferred all of the stock into Kerrigan's control, the lawsuit said. Nix had asked Kerrigan to step down as Active's CEO on July 26. The company's board of directors is conducting an inquiry into Kerrigan's fitness to remain CEO, with Kerrigan facing possible allegations of misuse of company property, failure to produce capital for Active ventures and suspected substance abuse.

The defendants are accused of breach of promissory estoppel, detrimental reliance, misrepresentation, breach of duty of good faith and fair dealing and violation of securities law.

The plaintiff is seeking all reasonable sums due, attorney fees and court costs.

Fayette Circuit Court case No. 19-C-113

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