Claxon said:
"when we looked out at our future, what we saw wasnt good. Assuming we couldnt go out and restructure or raise cash, it is possible that AWA would have been facing its own Chapter 11 at some point. Employees may like to think we saved US but the fact is we saved each other"
Doug Parker
That makes for a really good story, Clax.
Not to offend you..
How about more briefs, since you are interested in accounting.
The LMRDA Plaintiffs Are Entitled To A Full Accounting.
Case 3:14-cv-00577-RJC-DCK Document 62 Filed 07/14/15 Page 8 of 11
The LMRDA Plaintiffs have requested a full and neutral accounting for purposes of
determining what the LMRDA Defendants have collected, what they have authorized USAPA to
spend and from where, and what monies may ultimately be available to membership upon
dissolution. The LMRDA Defendants and USAPA have refused to provide an accounting and
have, instead, suggested that an audit for purposes of USAPAs LM2 reporting requirements
should suffice. Not so.
First, an LM2 audit does not reveal details about spending, including the back-up for
expenditures. Second, the LM2 audit is conducted on a fiscal year basis, which means that it is
not current. Finally, based upon the LMRDA Defendants and USAPAs recent discovery
responses, it is apparent that the LMRDA Defendants are not properly accounting for mergerrelated
expenses. This is apparent because although USAPA collected an additional amount of
dues from members over and above regular dues for a special merger assessment fund
commencing April of 2013, and that fund totaled over $4.5 million as of September 16, 2014,
USAPA has not actually used any of the funds held in the merger assessment fund on mergerrelated
expenses. Instead, the LMRDA Defendants have directed USAPA to expend regular
treasury monies to pay merger-related expenses, and have no explanation for why the merger
assessment fund has not been used to merger-related expenditures.
In sum, because (1) the LMRDA Defendants have failed and refused to produce detailed
information regarding what they have authorized USAPA to spend on merger-related expenses,
(2) what information the LMRDA Defendants and USAPA have disclosed shows that they used
the general treasury and not the merger assessment fund to pay merger-related expenses, and (3)
the LM2 audit is neither detailed nor current, the LMRDA Plaintiffs are entitled to an actual,
thorough accounting.