INDIANAPOLIS (AP) — The U.S. Department of Labor is suing the founder of an Indianapolis toxicology laboratory, alleging that he sold the company to employees in 2009 at a vastly inflated price.
The department’s federal lawsuit says 70-year-old Michael Evans should return millions of dollars in “unjust” gains from the sale of AIT Laboratories because it violated federal laws governing employee stock ownership plans.
Evans’ attorney, Andrew McNeil, says his client intends to fight what he called the government’s “faulty” charges.
The Indianapolis Star reports the lawsuit alleges Evans sold his 88 percent stake in the company to its 300 employees in 2009.
The suit says Evans used an “unreliable” valuation of $90 million for AIT when only a year before an Indianapolis investment firm had put AIT’s value at $17 million.