PNC sues former chief executive

PNC Telecom, the troubled mobile phones distributor, is suing its former chief executive in an effort to recoup almost half a million pounds that it claims it is owed.

PNC issued a writ against Darren Ridge, a Hampshire-based millionaire, on Friday. Among the allegations made is that Mr Ridge, who severed all ties with PNC last month, entered into several transactions involving his wife and others "without proper authority and in breach of contract and/or in breach of fiduciary duty".

Ian Gray, the turnaround specialist who joined PNC as chief executive six weeks ago, said the writ was for "a little under £400,000". He said that following Mr Ridge's resignation from the board on 3 May the company had conducted an investigation into possible "acts of misconduct" committed by Mr Ridge relating to "monies due from him". The company says that when Mr Ridge "resigned as an employee" on 21 June ahead of a disciplinary hearing, it concluded that "his non-attendance was due to him not being able to adequately respond to the allegations".

Mr Ridge, who joined PNC when it bought his business, KJC Mobile, in June 2000, became chief executive last year after the departure of PNC's founder, Gerry Thomas. PNC yesterday saw its shares close down 24 per cent at 7.25p. They traded at 410p two years ago.

Barry Mordsley of Salans, the law firm representing Mr Ridge, said: "We are going to defend the allegations. We will bring counter claims for breach of contract and are reserving our rights with regard to damage to reputation. Mr Ridge has brought proceedings for breach of contract and unfair dismissal."