Dayton Daily News

FORMER FUYAO EXEC SUES COMPANY, ALLEGES FRAUD

Lawsuit against area employer alleges fraud, breach of contract.

- By Mark Gokavi and Thomas Gnau Staff Writers

A former executive of Fuyao Glass America is suing the company and its founder, Chinese billionair­e industrial­ist Cho Tak Wong, claiming fraud, breach of contract, defamation, discrimina­tion and more.

Dave Burrows and John Gauthier were two top executives at Fuyao when their employment at the company ended in November 2016.

In that month, the auto glass producer announced a major shake-up of the senior management team at its Moraine plant, saying that Gauthier, who had been the company’s president, and Burrows, a vice president, were no longer in those positions. Jeff Daochuan Liu, a veteran of Chinese industry, was named as the company president.

The company said at the time that the changes were “intended to improve the company’s operationa­l efficiency.” Liu later told this newspaper that the company had lost about $90 million in two years.

Burrows is a veteran of the Dayton Developmen­t Coalition and played a large role in bringing

Fuyao to Moraine in 2014. At some point, Cho offered Burrows a job with Fuyao.

In the suit, Burrows said he told Fuyao — when that company offered Burrows a job — that he wanted to “be sure he was compensate­d through 2017.” Burrows did not return a call seeking comment.

His attorney, Anne Frayne, declined comment, saying, “We said everything in the complaint.”

Dan Curran, former University of Dayton president and an independen­t board member for Fuyao Glass America, referred questions to Fuyao’s corporate coun- sel. A message seeking com-

ment was sent to company officers.

According to a narrative presented by the lawsuit:

Chris Feng, then president of Fuyao Automotive North America, met with Burrows in August 2013 and said the company and Cho Tak Wong “will take good care of you.”

The suit said Cho told Burrows to tell Fuyao “what you want and I will sign it.” Bur- rows said that if he worked for Fuyao, he wanted to be compensate­d through 2017.

Cho hesitated because Burrows’ pay request was higher than other vice pres- idents and the base pay was

higher than the president’s, but Cho agreed, according to the suit. The suit said that in reli-

ance of Fuyao’s representa­tion, Burrows stepped down from the Dayton Develop- ment Coalition and sold his Coldstone Creamery franchise.

On Nov. 14, 2016, according to Burrows’ suit, Cho called a meeting at Fuyao where he “falsely stated to those present that Burrows had resigned.”

The complaint said Bur- rows was fired that day “with- out cause and without written notice, and was not given

any explanatio­n, oral or written, for his terminatio­n.”

Burrows was replaced by Sunny Yiqun Sun. In January, Burrows filed a charge of discrimina­tion based upon national origin with the Equal

Employment Opportunit­y Commission. In April, the EEOC issued Burrows a notice of right to sue.

Burrows alleges damages of at least $441,908 and asks for that amount in compensato­ry damages and more in

punitive damages, attorney fees and court costs.

The suit also alleges breach of contract, defamation and discrimina­tion — saying Cho’s

statement caused him “ridicule, shame, and disgrace” and adversely affected him profession­ally. An online business profiles said Burrows currently is the CEO of

Light Source USA in Wilmington.

Included with the complaint was a Nov. 17, 2016, letter from Fuyao attorney Micah Siegal to Burrows’ attorney. In that letter, Sie

gal alleges that Burrows said he would “disparage Fuyao by approachin­g members of the media, labor unions, and government officials and, using his ‘knowledge’ of FGA, ‘make things ugly’ for the company if Burrows didn’t get the more than $250,000 he wanted in a settlement.

Siegal wrote that a settlement deal for $118,000 was close except for a cou

ple of issues and that Burrows’ employment agreement stated Burrows was an at-will employee.

In his EEOC charge of discrimina­tion form, Burrows wrote that his terminatio­n coincided with Sunny Yiqun Sun’s acquisitio­n of an L-1 visa upon her completion of

one year working for Fuyao Group in China.

“Fuyao did not terminate me for cause or give me any reason for my terminatio­n,” Burrows wrote in the EEOC complaint. “Fuyao terminated me solely to replace me with a Chinese national.”

In January, Burrows filed a charge of discrimina­tion based upon national origin with the Equal Employment Opportunit­y Commission.

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