Former Percussionaire CEO files counterclaim
SANDPOINT — Percussionaire Corporation’s former president and CEO is denying allegations that he orchestrated a mutiny and sought to harm the company and has filed an 11-count counterclaim.
Defense counsel for Dr. Adel Bougatef filed a 65-page answer and counterclaim against Percussionaire alleging defamation, negligent misrepresentation, destruction of internal accounting records, breach of good-faith dealings and retaliatory firing.
The answer and counterclaim was filed in 1st District Court on June 16.
Percussionaire, a respirator manufacturer founded by inventor and aviator Dr. Forrest Bird, sued Bougatef last month. The civil complaint alleged that Bougatef, a long-time associate of Bird’s, secretly used company resources to develop competing products based on patented technology.
Percussionaire’s attorney, C. Matthew Andersen, argued in the suit that Bougatef meant to use the new products if he acquired Percussionaire or to start a rival company after damaging Percussionaire.
Bougatef’s attorneys deny the allegations and contend that their client was ousted after bringing to light accounting irregularities, which included the commingling of Percussionaire funds with other Bird ventures, understating net income and overstating goods sold.
The counterclaim further alleges that Bird misrepresented the number of patents he personally owns and that the patents for his original ventilator devices expired in 2008 and 2009 and are now part of the public domain.
Bougatef is accused of painting a negative picture of Percussionaire’s financial health in the field, but his counsel counters that the company’s financial difficulties predate Bougatef’s hiring and are the result of unauthorized tax entries made by company officials.
The defense also asserts that the plaintiffs have had repeated communications with third parties that were designed to have a disparaging effect on Bougatef’s reputation.
“Said communications are and were motivated by Defendant’s desire to retaliate against Counter-Plaintiffs and to create a smokescreen to divert attention from the tax and accounting irregularities uncovered by Dr. Bougatef,” Bougatef’s co-counsels, Robert Greer and Hank Marino, said in the counterclaim.
Andersen did not respond to a request for comment on the defense’s counterclaims.
On Monday, Andersen filed a motion to seal Percussionaire’s 2012 annual report, which was attached to the counterclaim as an exhibit. Andersen argues the exhibit contains virtually nothing other than proprietary and confidential facts and statements that would harm the company if left exposed to public view.
Greer and Marino are contesting the motion, arguing that the plaintiffs invited the disclosure of the report by making it a central issue in the case. Moreover, the document directly refutes allegations raised by Percussionaire, the defense maintains.
A hearing on the motion to seal is set for today.