JEA filed a lawsuit June 5 against its former CEO Aaron Zahn, along with a motion seeking to halt arbitration of Zahn’s possible post-termination compensation.
JEA’s board of directors voted Jan. 28 to terminate Zahn with cause based on preliminary investigations of a plan to offer the public utility for sale to a private entity and an employee compensation plan promoted by Zahn that was squashed when its potential negative financial impact to the utility was revealed.
“Mr. Zahn’s claim that he is entitled to nearly $1 million from JEA is disappointing given the damage he has caused to JEA and the Jacksonville community. JEA’s decision to terminate Mr. Zahn for cause was the right one, and JEA is fully committed to defending that decision in a transparent court proceeding. JEA remains focused on what it does best: providing great service for our customers,” said Gerri Boyce McKenzie, JEA special assistant for external communications, in an email.
The complaint alleges that Zahn committed fraud, breached his fiduciary duty and the public trust as CEO and misrepresented the terms of his employment agreement to the board.
The lawsuit was filed on behalf of JEA by Lee Wedekind III of Nelson Mullins Riley & Scarborough and the city Office of General Counsel.