'$70K CEO' Beats His Brother in Court

Dan Price of Gravity Payments wins lawsuit filed by brother
By Evann Gastaldo,  Newser Staff
Posted Jul 12, 2016 11:22 AM CDT
'$70K CEO' Beats His Brother in Court
Cary Chin, left, is seen through a sign on the glass door of Gravity Payments, a credit card payment processor based in Seattle, as she works Wednesday, April 15, 2015.   (AP Photo/Ted S. Warren)

The CEO who promised to pay all his employees a minimum of $70,000 per year just beat his brother in court, the Seattle Times reports. Dan Price, CEO of Seattle company Gravity Payments, was sued last year by brother Lucas, with whom he founded the credit card payment processing company in 2004. By 2008, the company had been restructured with Dan holding a majority share of 60% and serving as CEO while Lucas held a minority share of 40% but did not take part in the company's day-to-day operations. Since then, the two have disagreed over paying dividends to shareholders and over Dan's compensation, the New York Times reports. In his lawsuit, Lucas said Dan had not met the terms agreed to when they restructured the company years back.

Lucas also objected to Dan's $70,000 plan, and claimed he was not informed of it until just before it was publicly announced, and a Gravity spokesperson said Lucas' lawsuit was filed two weeks after the plan was announced. But, per previous reports, the lawsuit was actually served before the plan was announced. Regardless, a judge ruled in Dan's favor on Friday, deciding that Lucas didn't prove Dan overpaid himself or used a corporate credit card for personal expenses without reimbursing the company, and ordered Lucas to pay Dan's legal fees. As for the $70,000 decision, the judge noted that salary decisions are up to management, which Lucas is not, Inc. reports. Lucas says he is "shocked and disappointed" and considering his options, while Dan says his love for his brother "is unconditional" and he's ready to "put this challenging time behind us." (Read more lawsuit stories.)

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