The Best & Worst of 2011

by Arkansas Business Staff  on Monday, Dec. 26, 2011 12:00 am  

In addition, the dancers also had to pay $20 to $25 to the disc jockey and $50 or more to Visions in "house fees" as soon as they arrived at work. And sometimes the dancers didn't make enough in tips to cover the fees.

They are seeking a class-action certification for their lawsuit where they alleged violations of the Fair Labor Standards Act.

Visions, in its court filing, denied the allegations of wrongdoing.

Worst Time to Receive a Tax Bill
At the end of October 2010, Ralph Bradbury, the former president of Continental Express Inc. of Little Rock, and Pete Campbell, the trucking company's former executive vice president, received a bill from the Internal Revenue Service for more than $2.8 million for unpaid employment taxes. Campbell had died on Oct. 28, 2010, though, so his widow received the bill on the day of her husband's funeral.
Bradbury disputed the bill and filed a lawsuit in U.S. District Court to get it removed.

Worst Business Model
A number of Internet business cafes started opening in Arkansas in 2011. While checking email or firing off a fax, customers could also play casino-type video games for a chance to win cash prizes. Those in the industry insisted what they were offering was not gambling, but rather a type of sweepstakes promotion.

Government officials saw it differently and shut some of them down. A court has been asked to settle the legal question.

Worst Due Diligence
One of the worst cases of due diligence can be found by JDA Software Group Inc. of Scottsdale, Ariz.

It bought i2 Technologies Inc. in January 2010 knowing that i2 was being sued by Dillard's Inc. of Little Rock.

But JDA wasn't too concerned.

The company's due diligence found "there was potential financial exposure to i2, but that it was immaterial and that the chances of i2's actions being interpreted as fraudulent were not material."

A Dallas County, Texas, jury found otherwise and awarded Dillard's an eye-popping $246 million in June 2010. JDA appealed and Dillard's agreed to settle the case for a mere $57 million.

Worst Vacation
It was on a vacation that Mary Hardin first suggested playing the slot machines to her husband. Twelve years later, Lu Hardin pleaded guilty to federal charges of wire fraud and money laundering for snookering the trustees of the University of Central Arkansas out of a $300,000 bonus to which he was not entitled - money he needed to pay gambling debts amassed strictly from playing slots.

 

 

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