Judge Allows Lawsuit Against Former University of Louisville President to Proceed
A county circuit judge on Wednesday gave a go-ahead to the lawsuit filed by the University of Louisville against its ex-President James Ramsey who has been alleged of “fraud and mismanagement.”
Jefferson County Circuit Judge Judith McDonald-Burkman dismissed the plea filed by Ramsey to junk the lawsuit claiming that the allegations were too vague.
According to WDRB TV, the suit, filed in April, alleges Ramsey and few top administrators of mismanaging the nonprofit U of L Foundation, excessive spending from the endowment fund, higher compensation for themselves among others. The allegations forcer Ramsey to tender resignation in 2016.
“We look forward to vigorously prosecuting our full case to the court and recovering money, which will be put back into the endowment it was improperly spent from,” Andy Campbell, attorney for the university and foundation, said in an emailed statement. “What happened under the previous regime will never occur again, thanks to the governance reforms we have implemented.”
Meanwhile, Ramsey has been denying any wrongdoings and has maintained his innocence.
“They claim that Dr. Ramsey had some hypnotic effect on these board members,” Ramsey’s attorney Steve Pence told the court while referring to excessive spending without the knowledge of board members.
“When they say that Dr. Ramsey had a spell, in essence, over the board, they don’t claim how he cast that spell or when he cast that spell or who was under that spell, and that’s the only way we can defend against this, is to know those things,” Pence said.
Meanwhile, the university has declined to comment on the issues involved in pending litigation.