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Accusations fly as fired Vinyl Me, Please execs update lawsuit against former employer

John Wenzel, The Denver Post on

Published in Entertainment News

DENVER — A trio of executives fired from Denver-based Vinyl Me, Please record club have responded to an updated lawsuit against them by adding details to counter-suits that they say prove their innocence. They are alleging breach of contract and withheld severance, which they say stems from vindictive board members at the Denver-based company.

Adam Block and Cameron Schaefer filed a countersuit against the company over the summer and updated it on Sept. 13, in response to an amended complaint from VMP, which was filed on Aug. 30. Former executive Richard L. Kylberg is represented separately and is planning to file an individual response to VMP’s updated lawsuit, Block told The Denver Post.

The back-and-forth has been going for nearly five months. The VMP board in March fired and in May sued Block, Schaefer and Kylberg for allegedly diverting hundreds of thousands of dollars in company funds to a separately owned record-pressing plant in the River North Art District, which the suit characterized as a pricey pet project. They used NDAs, a secret code name and other methods to obscure the project, VMP’s lawsuit alleges.

Block and Schaefer then responded with a July countersuit. VMP updated its original, May lawsuit on Aug. 30, and the former execs responded with their updated complaint Sept. 13 — with Kylberg’s update due by Sept. 27.

VMP is an upscale record reissue company that charges more than $50 per month or $500, per year for subscriptions. Schaefer was the CEO, Block the CFO, and Kylberg the chief strategy officer.

“To date, the pressing plant has not demonstrated the ability to press vinyl records in a timely or professional manner,” VMP’s Denver District Court lawsuit reads.

But the executives are saying in their countersuits that they were unjustly terminated and are seeking “appropriate remedies and sanctions” against VMP. They are also asking for monetary damages, penalties and attorney’s fees, the suit reads.

 

Schaefer believes he is entitled to severance payments of more than $165,000, while Block said he owed $135,000.

“Upon information and belief, this bad faith lawsuit is being pushed and paid for by a board member, Keith Stoltz …” according to Block and Schaefer’s countersuit. “… who is extraordinarily wealthy and who has, in the past, openly boasted to these Defendants that he has in bad faith fired and then filed meritless lawsuits against former employees of other companies that he owns to ‘teach them a lesson’ and to punish them when they did not follow his directives.”

Their countersuit further alleges that the execs were fired in order to avoid paying them severance, and to attempt to force them through expensive litigation to forfeit their ownership in the company. Block and Schaefer are being represented by Stephen E. Csajaghy and Marisa Hudson-Arney of Denver’s Condit Csajaghy LLC.

Vinyl Me, Please, representatives did not respond to Denver Post requests for comment, but they are expected to file an answer to the countersuit by Oct. 11, Block said.

The company is also facing backlash from current and former members who have complained of price increases, monthslong shipping delays and narrowing options for their subscriptions.


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