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Pizza Inn sues former attorneys over executive severance debacle

October 5, 2004

The Dallas Morning News: THE COLONY, Texas — Pizza Inn sued its former outside law firm, Akin Gump Strauss Hauer & Feld LLP, on Oct. 4, saying the law firm breached its duties when it wrote severance package agreements for four senior executives.

In its lawsuit, the company said the packages could cost the company $7.4 million in "golden parachutes" to top executives if there was a change in control at Pizza Inn.

The lawsuit said the potential payout was more than twice Pizza Inn's 2003 net income of $3.1 million.

The filing in Dallas District Court also says that Pizza Inn paid Akin Gump for legal services that benefited the executives, but not Pizza Inn.

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