Simmons quits YTB board
A prominent Metro East trial lawyer has quit the board of directors of YTB International, the Wood River-based travel company that faces a range of legal scrutiny.
John Simmons, founder of SimmonsCooper LLC in East Alton, resigned from the board Wednesday, according to a Securities and Exchange Commission filing by the company late Friday. Simmons quit because he belived “he could not effectively influence the practices of the Company’s management,” according to the filing.
When reached Tuesday, Simmons declined to comment further, saying he’d let the filing “speak for itself.” Simmons had been on the board since late 2006 and was considered an independent director.
His departure comes as YTB faces a deceptive marketing lawsuit filed last month by California Attorney General Jerry Brown and two class-action lawsuits filed in East St. Louis, lawsuits it has vowed to fight. The company has seen its stock price battered in recent weeks since the suits were filed, and is suffering the first-ever decline in its ranks of “referring travel agents” who pay $450 up front and $50 a month for travel sales websites and contribute the bulk of YTB’s revenue.
In recent years, YTB has conducted business with several companies owned by its top executives and members of its board, a practice many corporate governance experts question. Simmons himself was not involved in any of those deals, aside from approving some of them as a board member. Before he joined the board, however, he controlled a company that sold YTB some land for its headquarters complex in Wood River. He also bought the Godfrey home of YTB’s founder, J. Lloyd “Coach” Tomer, in 2003, then sold it back to Tomer last year for company stock. Simmons will be able to take back that house, however, if YTB’s stock doesn’t spend 90 consecutive days above $2.00 by 2011. It closed Tuesday at $0.69.
[...] Credit:Simmons quits YTB board a2a_linkname=”Simmons quits YTB board”;a2a_linkurl=”http://www.frenzybiz.com/2008/09/09/simmons-quits-ytb-board/”; business Add to del.icio.us Digg This Subscribe to RSS feed Leave a Reply [...]