Savvis CEO Scores Stripper Suit

CEO of service provider sued for non-payment of a $241,000 bill at New York City strip club, says Daily News

Phil Harvey, Editor-in-Chief

October 21, 2005

2 Min Read
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

About the Author(s)

Phil Harvey

Editor-in-Chief, Light Reading

Phil Harvey has been a Light Reading writer and editor for more than 18 years combined. He began his second tour as the site's chief editor in April 2020.

His interest in speed and scale means he often covers optical networking and the foundational technologies powering the modern Internet.

Harvey covered networking, Internet infrastructure and dot-com mania in the late 90s for Silicon Valley magazines like UPSIDE and Red Herring before joining Light Reading (for the first time) in late 2000.

After moving to the Republic of Texas, Harvey spent eight years as a contributing tech writer for D CEO magazine, producing columns about tech advances in everything from supercomputing to cellphone recycling.

Harvey is an avid photographer and camera collector – if you accept that compulsive shopping and "collecting" are the same.

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