(Alliance News) - Lekoil Ltd on Friday said it has now been served with a civil action in the Superior Court of New Jersey regarding the termination of former chief executive Olalekan Akinyanmi.
Lekoil, which is an oil and gas exploration and production company with a focus on Nigeria and West Africa, said it will defend any claims in civil action from Akinyanmi.
The civil action alleges a breach of contract in the termination of Akinyanmi.
"The action alleges breach of contract in termination his employment contract; seeks declaratory relief for the award of bonuses for past services; seeks to employ set off of any termination payments due under the employment contract or the bonuses against the sum due under the CEO loan; and alleges defamation for issuing the RNS's related to the termination of his contract," the company said.
So far, the legal advice received by the company does not suggest any grounds for any of the above claims to be successful, Lekoil said.
In early June, Lekoil announced the termination of Akinyami's contract due to an unspecified "corporate governance breach".
A week later, Lekoil explained that Akinyanmi in late 2020 took on the role of CEO of Lekoil Nigeria Ltd, without Lekoil's consent.
"The company will seek to ensure that Akinyanmi be restricted from continuing in this role as CEO of Lekoil Nigeria, as per the provisions of his employment contract with the company. The company reserves its rights to challenge the validity of any actions in breach of these provisions and would advise relevant parties to seek the relevant legal advice," the company said at the time.
Lekoil shares were down 1.1% at 0.92 pence each in London on Friday afternoon.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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