Revolutions Medical (PINK:RMCP) filed a lawsuit against former president & director Thomas O’Brien, accusing him of taking bribes from and leaking confidential information to another lawsuit target, Richard Theriault.
Revolutions claims O’Brien breached his duties to the company and its stockholders by "facilitating and negotiating contracts on behalf of the company while at the same time sharing confidential Company information with, and receiving bribes from Richard H. Theriault, strategic product development, and Medical Investment Group."
O’Brien joined the company after Revolutions merged with Clear Image Acquisition Corp., for which he was the sole director and officer, according to court documents.
It was during merger discussions that O’Brien brought in Theriault, who was the sole owner of Strategic Product Development, a Massachusetts company providing marketing and development consulting services. Theriault, who was also the sole owner and CEO of Medical Investment Group, allegedly helped close the merger by convincing Revolutions CEO at the time.
O’Brien allegedly helped convince Rondald Wheet that Clear Image owned a portfolio of patentable and "extremely valuable" imaging technologies, and in January 2007 the Clear Image and Revolutions signed a merger agreement.
In October 2007, O’Brien joined Revolutions’ board of directors, and in 2009 he was appointed president.
"After assuming his appointment to RMC’s board of directors, and continuing thereafter upon his being hired as RMC’s president, O’Brien heavily lobbied for RMC to do business with Theriault and his companies to provide services to RMC related to the development and production of its syringe technology," according to Revolutions’ complaint. "O’Brien was party to a secret conspiratorial understanding with Theriault whereby they agreed that, for bribes and other valuable consideration, secretly paid and to be paid to O’Brien by Theriault through his businesses, O’Brien would act as a secret inside operative for Theriault to influence RMC to contract with SPD and MIG, and to provide secret information of RMC to RMC’s grave detriment."
Revolutions claimed it learned of a conspiracy earlier this year during discovery proceedings in a lawsuit against Theriault and his Medical Investment Group.
According to the complaint, O’Brien received bribes and accepted "other secret improper renumeration" from Theriault, amounting to at least $47,500 over the course of 3 years.
Revolutions evidence includes checks that O’Brien received from Theriault and his companies, according to the complaint.
"O’Brien, as president and board member of RMC, had complete access to RMC’s most sensitive and confidential information, that he secretly furnished Theriault that SPD and MIG used for improper advantage over RMC in its dealings with SPD and MIG," Revolutions claimed. "At all times material, O’Brien knew that RMC did not know of the secret conspiratorial understanding above-described, and he actively concealed and continues to conceal the existence of this conspiratorial understanding."
Revolutions is currently under investigation by the Securities & Exchange Commission, a lawsuit which the company claims was spurred by fraudulent claims made by Theriault as well as by "malicious and libelous letters" written by Philip "Marty" Hicks, who was found guilty of libel against the company and its CEO.
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