Stating that five former executives at Adelphia Communications Corp. --
including three members of the Rigas family -- had breached their fiduciary duty
to the company, the Coudersport, Pa.-based MSO said it would not pay their legal
fees, according to a filing Thursday night with the Securities and Exchange
Commission.
Former Adelphia chairman John Rigas and his sons -- former chief financial
officer Timothy and former executive vice president of operations Michael -- along with John Rigas'
son-in-law and current board member Peter Venetis will all have their legal
expenses withheld.
Also included in that group is former VP of finance James Brown.
According to the SEC document, Adelphia said each of the five "deliberately
breached their fiduciary duties to the company and/or its shareholders. As a
result, under the company's bylaws, these individuals are no longer entitled to
have the expenses (including the fees and expenses of their counsel) incurred in
defending actions against them advanced to them by the company."
The board said that it could reconsider its determination on Venetis if he
presents the board with "appropriate information."
In addition, Adelphia's board of directors said it named two new executives
June 1 -- executive VP, treasurer and CFO Christopher Dunstan and senior VP and
chief accounting officer Steven Teuscher.
The company offered no further information on the men.
