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Former CEO sues Smashburger over severance payout

David Prokupek alleges Smashburger fudged on performance so it could lower its severance obligation.

September 12, 2014

David Prokupek, former CEO of Smashburger, is suing the chain and its owners, Consumer Capital Partners, for millions of dollars in stock shares he was promised, according to the Denver Post.

Prokupek, who was fired in November 2013, alleges that Smashburger lowballed its Q4 2013 performance in an effort to lessen its payout to him. Prokupek says his severance package offered fewer shares than he was owed, and the stock price was also undervalued.

According to the Post:

Prokupek is seeking access to Smashburger's 2013 and early 2014 financial statements to better establish a valuation for his stock shares and to determine if the company met financial hurdles that would deliver him additional shares. Consumer Capital Partners, which has filed a suit asking a Delaware judge to appoint an independent firm to value the better-burger chain, has rejected the value set by an independent investment banking firm hired by Prokupek. The group refused to disclose its financial statements to Prokupek because he is not employed by the company, according to Prokupek's lawsuit.