Motion to dismiss TCT lawsuit denied

According to an order filed Nov. 18, Ninth District Court Judge Norman E. Young denied a motion to dismiss in the case of Campbell vs. Tri-County Telephone Association. The motion to dismiss was filed by TCT March 1.

Joe and Barbara Campbell, representing themselves and similar persons, filed the original suit against the company on Dec. 28, 2015. Among the defendants are TCT CEO Chris Davidson, CFO Steve Harper, and former board members Dalin Winters, Clifford Alexander, J.O. Sutherland, Daniel Greet and John K. Johnson, along with Neil Schlenker, who was the purchaser of the member-owned cooperative TCT, and attorney Michael Rosenthal.

The suit stems from the Campbells’ belief that more than 800 members of the TCT co-op were victims of fraud. Campbells live in the Hamilton Dome TCT prefix in Hot Springs County. According to the suit, Davidson, the CEO of TCT co-operative, and several former board members allegedly robbed owners in the co-op of the value of their ownership interests after the co-op was sold at the end of 2014.

The complaint alleges, among other violations: voting irregularities and violation of bylaws, fraud and breach of fiduciary duty by all defendants; fraud and misrepresentation by Davidson, Harper, Winter, Alexander, Greet, Johnson and Rosenthal; and civil conspiracy to defraud and deceive by Davidson, Winters, Schlenker, Big Horn Telecom, BHT Holdings, BHT Investmerns, BHT Merger, Alexander, Sutherland, Greet, Harper Johnson and Rosenthal.

However, Judge Young has signed an order dismissing the complaint against BHT, which states the plaintiffs failed to demonstrate the company had any involvement directly or indirectly with the allegations in the complaint.

Though the members of the TCT co-op whose interests were sold voted on the transaction — 79 percent in favor, with five percent opposed and the remaining 16 percent not voting — there is alleged misrepresentation, and concern co-op members were entitled to more than capital credits when the sale happened and should have had more information provided. There are allegations the defendants never appraised the assets of TCT prior to the sale.

The plaintiffs are seeking to the have the lawsuit declared a class action, allowing other cooperative members to join.