Former Cryptologic CEO Causing a Little Stir

Following recent hopeful news from online gambling software developer, Cryptologic, the company is finally on track for generating profit halfway into 2009, former "ousted" CEO, Javaid Aziz is stirring up some drama, which quite frankly, can't be boding well with investors. Shortly after departing and being replaced by new CEO Brian Hadfield earlier this month, Aziz is now calling for an extraordinary shareholders meeting.

Cryptologic Ltd., however, does not want to give Aziz this meeting, citing that he has violated various terms of his severance agreement. In fact, Hadfield said the company has already taken steps to fight Aziz and Cede & Co. (partnership nominee of the Depository Trust Company), stating that doing so is necessary in protecting the interests of Cryptologic and its shareholders.

Exactly what Aziz is hoping to gain from such a meeting is yet to be determined, although it would not be far off speculating more money. According to Cryptologic, Aziz has already received "substantial payments and commitments" regarding his negotiated severance pay. Now that he is openly violating his obligations, Cryptologic is apparently more concerned about damage control than anything else. That is, other than the $2.6 million Cryptologic says they are now entitled to get back from Aziz. Apparently, this is the severance agreement which is still under escrow.

So while Cryptologic attempts to regain the status it once had under the leadership of CEO Lewis Rose (prior to April, 2007), shareholders are watching over this little escapade very closely. They will also get a chance to evaluate Cryptologic's growth and restructuring (including the company headquarters move from Canada to Ireland) in an annual meeting to be held at the end of May or early June.