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Complaint Outlines Regency Outdoor Advertising Brothers Fighting for Company

Updated/Revised

 By Brian Hews and Randy Economy

Drake Kennedy who is part owner of Regency Outdoor Advertising has filed a complaint demanding that a jury trial be held against his brother Brian Kennedy claiming he committed breach of fiduciary duty, fraudulent concealment, and involuntary dissolution of the famed marketing company.

The complaint was filed in Los Angeles Superior Court on September 25 and obtained by Hews Media Group-Community Newspaper on Monday.

In the lawsuit, David Seyde is named as a defendant, who according to the documents holds 20% interest in another company related to Regency.  The lawsuit stated that Seyde held a senior manager position at Regency from approximately 2000 to the present and that he has been “intimately involved in the management of the company particularly in the last two years.”

The complaint describes in great detail how Drake Kennedy brought his brother in at 50% interest in the company in 1974, “but in recent years that relationship has deteriorated.”

It described Brian’s Kennedy’s conduct over the last year to include serious misconduct in his operation and stewardship of the company’s unique and highly valuable assets.

“Most egregiously,” the complaint stated, “Brian with the assistance of Seyde, transferred ownership of the one of the companies Crown Jewel properties located on the Sunset Strip to a separate company Brian secretly formed and in which Drake has no ownership interest. The new company paid nothing in return for the property.”

The complaint and spells out how Brian Kennedy deprived Drake of meaningful access to information about the company and prevented Drake from reviewing the company’s books and records.

HMG-CN has learned that Drake recently discovered a shortfall in one bank account that allegedly is worth “several million dollars” as well as “decreasing advertising revenues in another account.”

Power house attorney’s O’Melveny and Meyers, who represent Drake Kennedy are asking for a jury trial and also for compensatory damages, punitive damages, inspection of the company’s books and records, and an audit of financial records going back to 2010, involuntary dissolution an order requiring the company’s assets to be sold to a third-party.

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