Dunlap Sues Sunbeam Over Legal Fees

Albert Dunlap, former chairman and chief executive of Sunbeam Corp., sued his ex-employer for allegedly dragging its feet in paying $500,000 in legal fees he and another executive have racked up defending themselves in securities fraud lawsuits. In a suit filed in Delaware Chancery Court in Wilmington, Del., Dunlap and former Sunbeam Vice Chairman Russell Kersh contend the company must pick up the tab for lawyers who defended them against allegations that during their tenures they overstated Sunbeam’s profit and sales. Dunlap was fired in June after he told directors Sunbeam would report a second-quarter loss only a month after he told investors the company would report a profit. He had been lauded earlier for turning the company around. Out of $500,000 spent, the company has reimbursed the pair for $123,548, according to court papers.