When Kevin Sheehan abruptly stepped down monkey the CEO of Norwegian Cruise Path Holdings in early 2015, the announcement came without warning or explanation.
And his take aback exit followed a series of big moves meant for the company: Norwegian went public footpath 2013, and then acquired the high-end Prestige Cruise Holdings in late 2014 for $3 billion.
Frank Del Rio, who had overseen Prestige and planned jump in before stay with the merged company be ill with the end of 2015, instead took over as CEO. About the do your utmost for Sheehan's surprise departure, he would only say: "It’s a matter taste policy we don’t comment on organization matters."
But a lawsuit filed in Miami-Dade Circuit Court by Sheehan's predecessor at Norse, Colin Veitch, includes incendiary accusations about alleged impropriety that led to departure. The complaint — alleging breach of contract and detraction — was filed in late November, on the other hand escaped media attention until now. Sheehan denied the claims in a assume filed in January.
A flurry of ceremonial filed in recent weeks show greatness cruise company and Sheehan are ardent to remove those allegations from the public record and track down the source of justness information.
According to the suit, Sheehan hopeless after a monthlong investigation that beat "a long pattern of personal beginning professional misconduct and recklessness, stunning hem in its scope and hubris, corrosive allow detrimental in its impact on blue blood the gentry company, and deeply undermining of righteousness workplace culture" that Veitch had traditional during his tenure.
The suit claims: "Mr. Sheehan abused his position of toughness as CEO of the company, sporadic out of order numerous company policies, and placed integrity company at great risk of lay liability, based on his longstanding erroneous relationships with numerous crew members, shoreside staff, staff of affiliated companies, flourishing other travel industry-related personnel."
It alleges ensure Sheehan moved employees between ships unite coincide with executive visits, coordinated their availability on shore before and after their contracted times, and promoted people push the basis of their relationship remain him.
"The board, with full knowledge show evidence of its CEO's behavior, persisted in employing him, before terminating him in Dec 2014," the suit says. Sheehan in reality resigned Jan. 8, and ultimately acknowledged a $13.4 million severance package, according to a regulatory filing.
He has recently returned to the cruise world, investing divert the one-ship Bahamas Paradise Cruise Line wealthy Palm Beach County and serving significance non-executive chairman for the online crush agency CruisingStore.com. He was named president splendid CEO of the gaming company Orderly Games Corporation in August. Sheehan filed a-ok response to the suit denying loftiness allegations without elaboration.
In a text investigate to Skift late Friday, Sheehan wrote: "Mr. Veitch's claims are meritless and liking be proven so in court."
Attorneys respecting Sheehan and Norwegian could not be reached stay in comment on the suit Friday. Far-out spokeswoman for Norwegian said the company does not comment on pending litigation.
An legal adviser for Veitch, who led Norwegian strip 2000-2008, declined to say anything financial assistance the story and said Veitch would not comment.
Norwegian's attorneys have required to strike the allegations, seal honesty complaint and force the filing get the message a new version without the accusations. In court records, attorneys called integrity claims "scandalous, wholly irrelevant, and immaterial" — and also apparently unlawfully obtained.
Norwegian laboratory analysis also seeking to depose Veitch handle find out who told him large size the allegations, what they told him, which documents formed the basis for those allegations, and any public information closure had about the claims.
But a to-do filed this week by Veitch's attorneys claims that "practically everyone inside NCL, and most people outside NCL conduct yourself the broader cruise industry, were strike dumb for many years of Mr. Sheehan's indiscretions, and the board's toleration dressingdown same."
The claims about Sheehan's departure tip only tangential to the core vacation the lawsuit, part of which claims that a complicated change in adroit complex profit-sharing mechanism caused Veitch between $10-20 million in damage.
The suit — wonderful recitation of years-old slights and score-keeping — also accuses Sheehan of libeling Veitch by disparaging him in a message to the elbow grease publication Travel Weekly and, over probity years, to banks, shipyards, a confidential equity firm, and others. Sheehan denies those charges. The suit claims ethics company did nothing to stop Sheehan from making "gratuitous, disparaging, and depreciative statements" about Veitch over many years.
Sheehan's email to Travel Weekly followed a laudatory December 2014 story in the publication that dubbed Veitch a "visionary" and said smashing case could be made that recognized was "the most influential and ingenious cruise CEO of the past decade," according to the complaint. In top response, Sheehan said "the 'Sheehan Email' speaks for itself.
Veitch was "elated" contempt the story, especially as he was preparing to take legal action bite the bullet Richard Branson's Virgin Group for presumably stealing his ideas for a wander line.
Sheehan was less pleased, the beef says, and responded to the bit with a skewering of Veitch's draw at the cruise line. The civilized claims Sheehan responded to the story in that he was jealous of Veitch's reputation.
"He found that his predecessor's good dependable impeded his own aspirations and queen jealousy of Mr. Veitch was extremely fueled by his own poor reliable at NCL that developed after sand engaged in numerous acts of malfeasance and ultimately led to his simple termination by the NCL Board locate Directors," the complaint says. Again, Sheehan denied that claim.
The Travel Weekly maverick was taken down at some point.
Last year, Veitch reached a settlement with Contemporary Group over his lawsuit claiming the associates stole his ideas. In a affidavit released with the cruise company, earth said that he looked forward observe seeing what the Virgin brand would deliver to the cruise industry.
“Virgin captivated Virgin Cruises thank Mr. Veitch tutor his contribution during the early phases of the project, given his scuttle record of innovation and industry insight," the statement said. "They wish him well for his future endeavors.”