Stephen Linehan, president and CEO of RoTech, Orlando, Fla., resigned his position, and the medical-equipment maker said it would not renew COO Scott Novell's employment contract after the discovery that a former contractor had fabricated documentation for about $30 million in nonexistent sales for 2001. RoTech announced last week it would delay its second-quarter financial report to creditors because of the fabrication, but the company said there appeared to be no fraudulent billing of the government in connection with the falsified sales. In a written statement, RoTech said the "company and the board wish to emphasize that they have no reason to believe that either Mr. Linehan or Mr. Novell participated in the improprieties" and the executives' departures "should not be interpreted as suggesting otherwise." RoTech Chairman Wallace Abbott and Guy Sansone, a director at Alvarez & Marsal -- which managed RoTech until its March emergence from Chapter 11 bankruptcy protection -- will serve as co-CEOs effective immediately. -- by Julie Piotrowski
Management shakeup at devicemaker Rotech
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