Friday, May 18, 2007
Collins & Aikman, the failed auto parts company, has sued its former CEO David Stockman and Heartland Industrial Partners, the private equity firm that took control of the company in 2001, saying they enriched themselves by inflating earnings and collecting fees from a series of acquisitions that proved disastrous for the company. It also alleged that the auditors turned a blind eye to accounting irregularities. The charges mirror those contained in a criminal indictment against Stockman. See WSJ, Collins & Aikman Sues Former CEO.