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Former CEO’s legal expenses contribute to infoGROUP loss

Published on .

Omaha, Neb.—Data company infoGROUP posted a third-quarter operating loss of $1.7 million, which it attributed to litigation costs and severance payments made in connection with lawsuits against former CEO Vinod Gupta, who resigned last summer.

The company said its quarterly income would have been $15.6 million if not for a variety of expenses related to Gupta’s defense against shareholder lawsuits charging him with excessive expense reimbursements and corporate spending.

Those charges included $7.1 million in legal and professional fees, and a $10.2 million severance payment to Gupta. The company logged third-quarter sales of $181.9 million, compared with $185 million in the year-earlier period.

Gupta stepped down as CEO in August as part of a settlement of the lawsuits but remains on infoGROUP’s board.

—Christopher Hosford

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