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RMJM accused of asset stripping US arm

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Under-fire global behemoth RMJM is being sued for $664,000 by US staff who have claimed the company failed to pay bonuses and that it asset stripped their business

Staff at RMJM’s US offices, which previously worked for Hillier before the companies merged in 2007, are hoping to recoup money they claim is owed to them as part of an agreed $1.5 million ‘bonus pool’ for 2009.

It is alleged that a ‘significant portion’ – estimated to be worth as much as $8,000,000 – of Hillier’s former assets have transferred to RMJM.

RMJM chiefs Fraser Morrison and son Peter Morrison (pictured), described in court papers as the company’s  ‘alter egos’, are being held personally liable for the missing cash.

According to legal papers filed by Robert Hillier in a New Jersey court, the lawsuit seeks to ‘pierce the corporate veil of RMJM and to recover damages for RMJM’s breach of Merger Agreement from its alter egos principals, Sir Fraser Morrison and his son Peter Morrison. ‘

A spokesman for the practice said the money would be paid in the ‘near future’ and described the asset stripping claim as ‘outrageous and completely and utterly untrue’.

They said: ‘We’re surprised and disappointed at this move. However, we fully expect the final $664,000 payment to be made in the near future and for the matter to be resolved to everyone’s satisfaction.

‘Separately, the allegations of asset-stripping are both outrageous and completely and utterly untrue. In fact, the direct opposite has been the case as millions of dollars have been injected into the US business since the beginning of the recession.’

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Readers' comments (3)

  • Whether the RJMJ case is true or not, US companies have been asset stripping their UK businesses for years!

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  • get the guy off my screen please! Ghastly!

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  • I agree. Even Fred the Shred is less offensive.

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