A member of the Pacchiana family is suing Thalle Industries Inc. for company records that he claims could reveal wrongdoing at the family”™s construction materials business.
Gregg Pacchiana, a former president of Thalle, petitioned the company last month in Westchester Supreme Court to grant access to the records.
The records, according to a letter his attorney sent to Thalle in April, would enable Pacchiana to “investigate possible wrongdoing or mismanagement concerning company finances and operations.”
Pacchiana”™s brother, Glenn, the company CEO, did not respond to an email asking for his side of the story.
Thalle is based in Briarcliff Manor and runs an asphalt plant and quarry in Fishkill and a construction materials recycling warehouse in Elmsford.
Gregg Pacchiana, of Chapel Hill, North Carolina, owns 22.5% of the company stock, according to the petition. But since summer 2019, he claims, the only company records he has seen have been excerpts of filtered financial data that were incomplete or inconsistent.
He is demanding financial statements, business plans, compensation records, tax returns, shareholder communications, pension plan records, documents about property purchases, charitable contributions, reimbursements to Glenn or immediate family members, and more.
Besides investigating possible wrongdoing or mismanagement, Gregg Pacchiana said he needs the records to determine the value of his interest in Thalle, the appropriate compensation for officers and his tax liability.
The brothers have been at odds for years, according to a lawsuit Gregg filed against Glenn last September in U.S. District Court in Durham, North Carolina.
By 2019, the brothers”™ relationship had “significantly deteriorated,” the complaint states, and Gregg no longer trusted Glenn”™s “representations regarding jointly owned businesses and agreements.”
Gregg claimed Glenn owed him money on a 2006 loan for a golf course project in Saratoga, New York. The project failed and Glenn allegedly did not repay the debt.
Gregg claims that Glenn agreed to pay the debt in 2019, for Gregg”™s attendance at a family meeting to discuss their sister”™s shares in Thalle Industries. The result of that meeting, according to the complaint, was a transaction to Glenn”™s benefit “in excess of $15 million.”
Still, Gregg alleges, Glenn has refused to pay back $330,143 for the Saratoga deal.
Glenn disputed his brother”™s account, in a response to the North Carolina complaint, and asked the court to either dismiss the case or transfer it to federal court in the Southern District of New York.
Buffalo attorney William F. Savino represents Gregg Pacchiana in the Westchester lawsuit.
