Morningstar’s Rich files for damages amid dismissal rumours…
Morningstar Research Pty Ltdchief executive and publisher, Graham Rich, is filing for damages against the group’s US based majority shareholder, Morningstar Inc.
The move sheds some light on events at the research house which has been surrounded with industry speculation that suggested Rich had been dismissed by the company's board and had sought legal action to overturn the dismissal.
In a statement issued yesterday Rich confirms he is filing for damages following the “oppressive manner” of Morningstar Inc.’s actions towards Rich’s company, and minority shareholder of Morningstar Research Pty Ltd, Fiduciary Limited.
Fiduciary Limited was the sole owner of the FPG Research business in Australia and New Zealand prior to it joining Morningstar Research Pty Ltd in Australia and New Zealand in April 1999.
FPG currently holds 45 per cent of the Australian operation with Morningstar Inc owning the 55 per cent balance.
With the dispute between the two shareholders to appear before the equity division of the Supreme Court of New South Wales on Friday, Rich continues to stand firm on questions regarding his future with Morningstar.
“I remain as CEO and publisher of Morningstar Research Pty Ltd in Australia and New Zealand, and remain committed to the present objectives of this business, as well as resolving this shareholder’s dispute as quickly as possible,” Rich says.
The comments are consistent with those made by Rich in an exclusive interview last week, to be published in this week’s edition ofMoney Management.
At the time, Rich said he would continue on in his role of chief executive and publisher as well as maintaining his shareholdings in the company.
“The fact is I remain the chief executive and a shareholder of Morningstar and remain committed to that position. I am also adamantly defending that position,” Rich says.
Rich’s comments follow the circulation of a number of rumours in the financial services industry.
“In recent days I have become aware of a number of rumours circulating in the financial services industry concerning Morningstar Research Pty Ltd. Some of these rumours are hopelessly incorrect, and some of them have an element of truth to them,” Rich says.
In the announcement, Rich says the purpose of the announcement is to provide some clarity and fact.
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