Vinyl Me, Please Sues Three Former Execs For Funneling Money To Pressing Plant

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The record-of-the-month club Vinyl Me, Please has filed a lawsuit against three former executives, accusing them of funneling money into a vinyl pressing plant. As The Denver Post reports, the company sued former CEO Cameron Schaefer, former CFO Adam Block, and former Chief Strategy Officer Rich Kylberg this past week for breaching their fiduciary duty. All three were fired from the company in March.

In 2021, the trio proposed starting their own vinyl pressing plan to the board of VMP, as a way to circumvent vinyl production delays that occurred due to the pandemic. They allegedly said that the plant would be independently owned and operated, but the suit claims that by that point they had already spent $200,000 in company money on purchasing equipment for the plant. “Defendants did not disclose to the board that they had directed hundreds of thousands of dollars of VMP money to pay the salary and bonuses for a VMP employee that worked almost exclusively for the pressing plant,” the lawsuit states.

Over the next couple years as the Denver plant was constructed, the suit says that Schaefer, Block, and Kylberg focused all of their attention (and a significant amount of the company’s money) on the plant, negatively impacting the operations of Vinyl Me, Please. “When, by late 2023, the pressing plant was still not able to press records or fulfill orders, the board began to investigate the relationship and business dealings between the pressing plant and VMP,” the lawsuit reads, leading to their firing in March.