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Michael Pirron filed suit against the IT firm he founded in 2006 last week after claiming other executives forced him out of the business.
May 16, 2019, Richmond BizSense — The original CEO of a well-known local IT firm is suing the company he founded, claiming he was pushed out by “ambush” to clear a path for an allegedly illegitimate sale.
Michael Pirron last week filed suit against Impact Makers, which he launched in Richmond in 2006 and helped grow to upwards of $20 million in revenue annually.
The company gained notice for routinely landing on lists of Richmond’s fastest-growing companies and for gifting its equity shares and the proceeds of its eventual sale to two local charities.
Also named as defendants in the suit are company executives and directors Karen Coleman, Teresa DiMarco, Scott Walker, W. Wilhelm Rabke, Andrew Wolff, Rodney Willett and Marianne Vermeer.
Pirron also is suing Benefit Holdings Inc., an entity he claims the defendants created in order to purchase part of Impact Makers and diminish Pirron’s authority. The suit was filed in Richmond Circuit Court on May 8.
Pirron, who is now a vice president at competitor Networking Technologies + Support, is alleging six counts, including breach of fiduciary duty, breach of contract, statutory conspiracy, common law conspiracy and conversion.
He’s seeking either an injunction that would reverse the sale of Impact Makers to Benefit Holdings or $15 million in damages to be paid to IMH (Impact Makers Holdings) and $3 million to IM. He also seeks $36,000 in damages for himself for loss of rights to the company, loss of income, reputational damage, emotional distress and attorney’s fees.
Wolff, who took over as Impact Makers’ CEO in October 2018, said Wednesday the company is planning to respond to the lawsuit in court.
“The actions that we took were to support our commitment to doing what’s right to improve our company’s ability to fulfill our mission, which is essentially why we exist,” Wolff said. “This lawsuit is a culmination of claims and demands that we believe have no merit and do intend vigorously to defend it. Our intent is to make sure this lawsuit will not affect our dedication to serving our customers and making our community a better place to live.”
In a phone interview Wednesday, Pirron, who was removed as CEO last year, said that the sole purpose of the lawsuit is to roll back the sale and preserve his role as so-called permanent director of Impact Makers.
“I can’t just walk away … I want to protect my life’s work,” he said. “It’s a matter of principle. I’ve never sued anyone or been sued. I’m not a litigious person.”
Pirron founded Impact Makers in 2006, providing IT consulting services and differentiating itself by being a “Benefit corporation” or B-Corp., a legal designation that calls for it to donate leftover profits to charity. Pirron lobbied to create the B-Corp designation in Virginia in 2011.