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11th July 2007

Champ Car World Series co-owner Kevin Kalkhoven is one of four former executives of a fibre optics company facing legal action from former investors in the company who suffered huge losses when the value of its shares fell by 99% in 2001.

The JDS Uniphase Corporation, of which Kalkhoven was CEO until he stepped down in May 2000, recorded a $50.6 billion net loss in 2001. Plaintiffs in the case claim that the four executives sold more than $391 million worth of their shares in the company between July-August 2001 but already knew in mid 2000 that business was slowing down.

A lawyer for Kalkhoven told the Reuters news agency that his client did nothing wrong and was confident he would be vindicated at a trial, "He retired when the company was going like gangbusters and it continued to go like gangbusters for several quarters after he left. The allegation that he knew anything other than that those good times would continue, as they did continue, is completely false."

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