Disgruntled chief executive wins $2.7million

GBST Holdings is facing a roughly $2.7 million bill after a former chief executive won a wrongful dismissal court claim against the financial services software company.

Stephen Lake was GBST's chief executive and managing director from 2001 to 2015, when the board terminated his employment.

Lake filed a claim against GBST in February 2016 alleging the company owed him $2.6 million.

GBST filed a counterclaim alleging Lake engaged in insider trading of the company's shares.

The counterclaim also alleged that lake caused one of its subsidiary companies (GBST Hong Kong Limited) to enter into a lease to his advantage without authority and board approval, according to court documents.

The Supreme Court of Brisbane on October 11 ruled in Lake's favour and threw out GBST's counterclaim. This came in midst of GBST being acquired by UK-firm FNZ.

Lake won damages for breach of contract for wrongful termination of his employment ($643,100 as 12 months' salary, including superannuation), about $1.4 million (the value of the 365,177 ordinary shares in GBST as at 9 November 2015) and another $121,397 as underpayment of entitlements.

Court also ordered GBST to pay interest, which the company said in ASX filings would be approximately $490,000.

"The company is disappointed with the outcome and is now reviewing its options," GBST said in October 11 filings.

"The judgement amount and relevant costs will be included as an abnormal cost in the company's financial accounts for the 2020 financial year," it said, adding that it would not affect the FNZ scheme of arrangement.

The court will hear from the parties on further costs.

Read more: GBST HoldingsStephen LakeSupreme Court of BrisbaneASXGBST Hong Kong Limited
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