Henry Luken, the Tennessee-based owner of Christensen Shipyards LLC, is being accused by the Christensen family and former officers of Christensen Shipyards Ltd. of pushing the Vancouver Yacht-building business toward financial ruin and then taking it over.
According to a lawsuit filed on Wednesday in U.S. District Court, former company president Joe Foggia, founder Dave Christensen, board member Pat Withee and the Christensen Group Inc. are seeking damages in excess of $17.2 million against Luken.
The lawsuit paints Luken as an out-of-state corporate raider with a pattern of acquiring companies through financial manipulation, high-pressure tactics and fraudulent transfers.
Luken had a 50 percent stake in the former company before he purchased its assets in receivership for $5.5 million and reopened it, keeping the “Christensen” name.
The court filing accuses the then-majority shareholder of “skimming profits and cutting side deals with personal friends.” It also accuses Luken of taking approximately $5 million from a former customer of Christensen Shipyards Ltd. and spending the money on credit card bills, a personal airplane and six cars.
“The lawsuit alleges that Henry Luken put his own greed over the welfare of his employees and business partners,” said Kerry Shepherd of Markowitz Herbold PC, attorney for the Christensen family, in a press release. “David Christensen gave this company his considerable time and talents, infused his own funds and continually put the welfare of employees and others ahead of his own personal financial gain. How tragic that he took on Henry Luken as a partner with quite opposite priorities.”
While Luken could not immediately be reached for comment, the suit filed this week is just latest piece of litigation involving the shipyard, which shut down briefly last year due to financial trouble.
In March, Luken filed his own multi-million dollar lawsuit against the former company’s leaders, claiming mismanagement of funds.
At its height, the Vancouver-based luxury yacht maker employed nearly 500 people. Christensen Shipyards LLC now employs around 115 workers.
This story will be updated
