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disarray and losing their grip 7-27-01

From: "Carol Spooner"
Fri, 27 Jul 2001 22:43:04 -0700
Subject: UPDATE -- Committee to Remove the Pacifica Board
July 27, 2001

Dear All -- Some recent developments are encouraging indications that the "opposition" is in disarray and losing their grip.

Pacifica Board member Andrea Cisco took our offer to dismiss her from our suit if she would resign from the board. Her resignation reduces to 6 the board "majority" of those who have consistently supported the takeover and distortion and perversion of Pacifica's mission. There are currently 11 board members -- 6 on the "wrong" side of this battle and 5 who are actively working and litigating to restore Pacifica to its mission and to sound governance. While they still have a majority, we have strong indications that more "majority" are seriously considering leaving the board -- as they should have done long ago.

Pacifica Executive Director Bessie Wash has fired both Epstein Becker & Green and the insurance defense law firm Wendel Rosen Black & Dean as attorneys for the Pacifica Foundation. At the same time she also claims to have fired them both as defense counsel for the individual directors -- apparently without at least some of the directors' consent or approval according to Epstein Becker & Green attorney Daly Temchine -- which she has no legal right or authority to do. This, once again, raises the issue of the inherent conflict of interest that exists when the attorneys for the individuals accused of wrongdoing (the board members) are defended by the same attorneys that represent the foundation (which should be neutral) in these lawsuits.

As many of you have heard Bessie has reportedly brought in 2 new expensive Washington DC law firms: Williams and Connolly and Jaworski and Fullbright -- both at Foundation expense -- although we have only heard from Williams and Connolly, and neither firm has yet filed a "substitution of attorneys" form with the court (that has to be signed as approved by the individual defendants).

The firing of the law firms came immediately on the heels of their disastrous attempt to pack 5 new directors on the board with 7 days' notice, which the judge forbid them to do in his July 17th ruling. Later that week Bessie Wash's assistant sent a notice that they would hold a board meeting in less than the 30 days required by court stipulation to "elect" more directors, and then that notice was contradicted 2 days later by a memo from director John Murdock (a partner in the Epstein Becker & Green firm) saying they would not hold another meeting until "sometime in late August or early September". Indications are that the board "majority" may be breaking up into factions, they may not have the votes to "elect" (illegally appoint) any more directors, and some of the candidates they previously put forward may no longer be willing to serve -- thanks to the many people who contacted them to ask them not to come in under these circumstances.

Our attorneys are seriously looking at our options here. One option is to file a motion for appointment of a receiver to take control of Pacifica management and finances during the remainder of the litigation. Obviously Executive Director Bessie Wash has run amok, is no longer under the control of any faction of the board, and is wasting corporate assets by firing the lawyers paid by directors' insurance (Wendel Rosen Black & Dean) and hiring expensive new lawyers paid by the foundation. This will also give us an opportunity to bring up the horrifying mismanagement (legal euphemism for atrocities) at WBAI, and perhaps, get some court ordered control over that situation as well. We will see. This would be another expensive motion, and your continued generous financial support is needed.

In short, as more chaos descends on Pacifica our case with the judge to intervene becomes stronger & stronger, and the board majority's assertions that their interests and Pacifica's interests are "identical" become less credible. Whether the threat of a court appointed receiver, and the board majority's obvious loss of control over the situation, will bring them to negotiations to end this long nightmare with their resignations remains to be seen. I certainly hope so.

Thanks again for all your encouragement and support. We couldn't do this without you!

--Carol Spooner
Committee to Remove the Pacifica Board
(sponsoring the "listeners' lawsuit")

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