Two former executives of the biopharmaceutical company Rockwell Medical have launched a lawsuit against five members of the board, claiming their whistleblower complaint against the board led to their dismissal last month.
CEO Rob Chioini and CFO Thomas Klema claim the board was told of a whistleblower complaint they filed the night before they were sacked at a board meeting. The complaint alleged that the board hijacked the company to commit securities fraud and personally profit.
The two also claim the board continues to commit violations of the Securities and Exchange Act by intentionally publishing false or misleading information about the executives’ dismissals, as well as failing to disclose material information. Chioini and Klema are seeking reinstatement to their former executive positions, back pay and legal fees.