Savvis CEO Scores Stripper Suit

A day after a ho-hum earnings report, Missouri-based IT utility provider Savvis Communications Corp. (Nasdaq: SVVS) this morning found its CEO splashed on the cover of the New York Daily News, as a major credit card company is suing him for partying with strippers and then dodging the bill.

American Express is suing Savvis and its CEO, Robert McCormick, over a two year-old, $241,000 unpaid tab at Score's, a famous New York strip club, according to a suit filed in Manhattan Superior Court, says the News.

McCormick's wife insists that her husband's corporate credit card was stolen, and that's how the bill got so high, the paper reports. McCormick admits to going to Scores on the night in question but, according to the Daily News account, he didn't pay the bill when it was due because he was sure he didn't spend more than $20,000.

[Ed. note: $20,000? That's a lotta lap dances!]

Of course, it's nothing new for a strip club, especially Score's, to be accused of running up a customer's tab while the customer is otherwise engaged. So it'll be up to the courts to find out how McCormick went from spending what he claimed was less than $20,000 to allegedly spending more than $200,000.

Meanwhile, Savvis shareholders watch from the sidelines as the company's stock still isn't anywhere near the $1 mark. In early afternoon trading on Friday, shares of Savvis slipped $0.03 (4.41%) to $0.65.

On October 7, Nasdaq sent Savvis notice that it has until April 3, 2006, to regain compliance with The Nasdaq SmallCap Market's $1.00 minimum bid price rule. If the company doesn't stimulate its stock accordingly, it could face the possibility of delisting. (See Savvis Receives Nasdaq Warning.)

Savvis announced net losses of $13.7 million on revenues of $166.1 million during the third quarter. The company's net loss was higher and its revenues were lower a year ago. (See Savvis Reports Q3.)

The company's executives didn't return calls from Light Reading.

— Phil Harvey, News Editor, Light Reading

Page 1 / 3   >   >>
whyiswhy 12/5/2012 | 4:10:07 AM
re: Savvis CEO Scores Stripper Suit Answer:

Happens every day, though not usually with this consequence....

Morgan Stanley
Fires Male Staffers
For Strip-Club Trip

January 5, 2006; Page C3

NEW YORK -- Morgan Stanley has fired a stock-research analyst and three sales staffers in the Wall Street firm's institutional-stock division after they accompanied one or more clients on a visit to an adult-entertainment club, according to people familiar with the matter.

The firing of the staffers, all men, sent a message that exclusionary, male-only activities won't be tolerated at the firm, according to people familiar with the matter. In mid-2004, Morgan Stanley agreed to pay $54 million to settle a gender-discrimination case. As part of the settlement, Morgan Stanley denied wrongdoing but agreed to take additional steps to promote diversity and conduct antidiscrimination training.

One of the complaints in the gender-discrimination case brought by the Equal Employment Opportunity Commission was that women in the same institutional-stock division had been improperly excluded from certain client-related activities such as male-only golf outings and strip-club visits.

The EEOC complaint in 2001 followed an individual complaint filed with the EEOC in 1998 by a former institutional-stock saleswoman, Allison Schieffelin, who was fired in 2000. She had charged that gender discrimination caused her not to be promoted to managing director.

A Morgan Stanley spokesman said, "We don't think it's appropriate to comment on personnel matters."

In the recent episode, the four fired employees were all technology-industry specialists who made the strip-club visit during free time while they were attending a three-day Morgan Stanley conference for tech investors in early November at the Arizona Biltmore Resort & Spa in Phoenix.

The firm has a policy against participation in an exclusionary event while on company business, people familiar with the firm said. One rule specifically bars attending adult-entertainment establishments in connection with company business. One or more clients were present at the Arizona establishment, one person familiar with the matter said.

Moreover, the same people said, such actions couldn't be tolerated under a new chief executive, John Mack, who is known as a champion of both diversity and regulatory compliance.

The firm has reported the episode to an outside monitor, lawyer Paul Shechtman of the firm Stillman & Friedman, who must make annual reports on the firm's compliance with an EEOC consent decree.

In the EEOC settlement last year, the firm agreed to pay $12 million to Ms. Schieffelin and set aside $40 million to settle complaints by past and present female employees in institutional equities.

And the rest of the story is

1) they would have been fired anyway if they had told their clients they would not accompany them to the strip club, and as a result the clients dropped MS due to their companies prudish policy,
2) they could have kept their jobs if they had invited a couple of fellow females along,
3) or simply had visited the local comfort home, and had sex with a disabled minority hooker!



road__runner 12/5/2012 | 2:56:31 AM
re: Savvis CEO Scores Stripper Suit You can't make this stuff up!

Now Amex can put up ads like those from MasterCard

A night on the town at Scores: $241,000
A share of Savvis: $0.65
Suing Savvis CEO for unpaid Scores bill: Priceless

DCITDave 12/5/2012 | 2:56:31 AM
re: Savvis CEO Scores Stripper Suit Light Readers,

What's the largest sum you've ever charged to a corporate credit card in one evening?

alchemy 12/5/2012 | 2:56:29 AM
re: Savvis CEO Scores Stripper Suit Phil Harvey asks:
What's the largest sum you've ever charged to a corporate credit card in one evening?

I've done a million several times.

In Italy. Paying in Lira.

trzwuip 12/5/2012 | 2:56:27 AM
re: Savvis CEO Scores Stripper Suit Easy answer: If you remember, then you're not a high -roller because your company hasn't equipped you to be one.
Upside_again 12/5/2012 | 2:56:25 AM
re: Savvis CEO Scores Stripper Suit 200K ?? Every lap dance is about what..$10.00 less a $20,000 drinking bill. That would be "18,000" lap dances! Then not paying the bill? C'mon dude, You play - you pay!
chipsales 12/5/2012 | 2:56:21 AM
re: Savvis CEO Scores Stripper Suit I heard A.E. was calling this guy all night long for verification--every $10k. A.E. even had Scores fax the guys finger prints and ID back to the office for verification. That is why A.E. is going after him with teeth. They have him nailed! He is so busted. What a moron!

Oh to answer the question-$2k for a dinner for 10 in Japan that was a very good customer.

mrcasual 12/5/2012 | 2:56:20 AM
re: Savvis CEO Scores Stripper Suit You've obviously never heard of tipping big. And at $200K we're talking really big.
voyce_overipee 12/5/2012 | 2:56:20 AM
re: Savvis CEO Scores Stripper Suit I want to know how he could physically have spent that much in one night. Even if he had a group of people. Think about it. and not in a sexual way - i just mean literally how could a group of people even buy enough lap dances and drinks to run a tab like that in one night?
whyiswhy 12/5/2012 | 2:56:19 AM
re: Savvis CEO Scores Stripper Suit BS on a stick.

The story has Scores PR fingerprints all over it. According to THEIR story, this guy would have had to get up 24 times to answer the phone call from AE.

Simply not credible. Let's do a bit of math: 15 minutes to get approval through AE (with FAX and voice call) per transaction, 24 times is six hours of nothing but waiting for AE and the FAX machine.

And really great PR for AE by the way: letting a pimp joint release stuff like this. So much for them being a "safe card".


Page 1 / 3   >   >>
Sign In