(Source: PRNewswire)
MIAMI, June 30 /PRNewswire/ -- Karl W. Miller, through his attorney Mark D. Johnson, today announced that he has filed a lawsuit against MMC Energy, Inc. (NasdaqGM: MMCE) and George Rountree III, the company's lead independent director for their intentional infliction of severe emotional distress and breach of contract. Miller is the founder and a former Chairman, CEO and director of MMC, a portfolio company Mr. Miller established to acquire, develop and operate energy assets.
The three-count complaint filed in Martin County, Florida, alleges that MMC and/or Rountree have sought to deprive Miller of his health insurance coverage by means of fraud, extortion and the breach of a fiduciary duty. Beginning in September of 2008, Miller has been afflicted with a series of life threatening health traumas including a ruptured colon and a massive pulmonary embolism. He has spent time in intensive care on three different occasions and been admitted to hospital emergency rooms five times since September 7, 2008.
The lawsuit alleges that Rountree and MMC, first sought to change MMC's health care provided from the Aetna Life Insurance Company to Oxford Health Insurance, a regional HMO that does not do business in Florida, where Miller resides or North Carolina where Miller was initially stricken and has been treated. While Miller was awaiting further surgery at the Duke University Medical Center, in late May, Rountree and MMC threatened Miller's wife with the retroactive cancellation of the family's health insurance.
More recently Rountree and MMC told Miller through the company's payroll provider that his health insurance has been cancelled effective December 31, 2007. Since that date Miller has accumulated medical bills in the hundreds of thousands of dollars he had believed were covered by health insurance.
Miller's health insurance policy with MMC, which has been extended under provisions of Federal law, guarantees him the right to convert his coverage with AETNA to a private policy, however that conversion privilege may not be exercised unless MMC issues him an eligibility form which MMC refuses to provide, in breach of fiduciary duty owed to Miller, the lawsuit alleges.
The lawsuit alleges that the purpose of this outrageous conduct by Rountree and MMC is to intimidate and silence Mr. Miller and by example, other MMC Energy, Inc. shareholders who might consider opposing the planned dissolution of MMC and the liquidation of its assets at distressed prices as proposed in its preliminary proxy statement filed with the SEC on June 5, 2009.
