The lawsuit revolves around expenses
AMA, known as the biggest ‘smash repair’ business in Australia, is suing its former CEO Andy Hopkins over alleged anomalies in his spending. The defendant has been accused of claiming bonuses and incurring expenses inappropriately.
The company said the Federal Court aims to secure $2.4m from Hopkins – of which about $1m should cover “unauthorised expenses” allegedly incurred by or on behalf of Hopkins during his tenure as CEO. Meanwhile, the company also demands Hopkins’ repayment of a $1.4m loan.
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Hopkins has denied all allegations. He claimed the transactions were transparent and presented to the board for discussions. His bonuses meanwhile were approved by the board, he argued.
Given the volume of repairs performed by AMA – reaching more than 300,000 a year – the former CEO later opted to resign in order to keep the business operating smoothly, the AFR reported.
AMA, however, welcomed the investigation by accounting firm McGrathNicol which followed “whistleblower complaints” against Hopkins.
Hopkins believes his dispute with AMA has to do with the conflict brewing between him and AMA director Simon Moore. Hopkins had earlier claimed investors were not too happy about the millions in payments made to a private equity firm where Moore was a senior partner.
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While AMA claimed it would seek to “recover the funds”, it filed the complaint only in the past week. The repair business is also grappling with staff shortages, especially among leaders. Five senior managers and executives have since left AMA.
