Charles C. Foti, Jr., former Louisiana Attorney General and current partner in the law office of Kahn Swick & Foti, announced on Friday that his law office has begun an investigation into CSX’s decision to hire Hunter Harrison as CEO in March of 2017.
Mr. Harrison, who passed away in December from what was described as severe complications from a recent illness, was given a four-year contract that included an $84 million reimbursement for the lost salary and benefits from his previous job, payment of a tax indemnity that could be as high as $23 million, and tens of millions in salary and incentive compensation. When CSX requested an independent doctor review Mr. Harrison’s medical records prior to hiring he refused but was hired anyway.
KSF is looking into concerns that CSX’s officers and/or directors may have breached their fiduciary duties to the shareholders by having prior knowledge about Mr. Harrison’s health condition and not disclosing that information. The investigation will also look into whether or not they failed to exercise due diligence during the hiring process.
Anyone with information that could assist KSF during its investigation is asked to call KSF at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn at email@example.com.