Hedge Fund Proxy Target Dumps CEO

Jul 5 2007 | 1:26pm ET

Hounded by a Massachusetts hedge fund, Pomeroy IT Solutions said today that it has sacked president, CEO and namesake Stephen Pomeroy.

The firing came after a review by an independent counsel, and was attributed to “certain conduct and actions” by Pomeroy, according to a statement from the company, that did not involved financial impropriety or any illegality.

In April, Cambridge, Mass.-based Flagg Street Capital, which owns about 10% of Pomeroy IT, launched a proxy battle to oust Pomeroy and his father, David, who serves as chairman of the Hebron, Ky.-based computer hardware and consulting business.

“Under Stephen Pomeroy’s watch as CEO, the company performed miserably at a time when the rest of the IT industry thrived, restated its financial statements more than once due to accounting errors, and consistently missed guidance,” Flagg Street charged in an April Securities and Exchange Commission filing.

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