LOUISVILLE, Ky. — The University of Louisville sued its former president on Wednesday, claiming he and others conspired to divert millions of dollars from the school’s investment arm in a long-running scheme.
The lawsuit seeks to recover millions that the university claims was lost during the tenure of former university president James Ramsey.
The university and its foundation filed the suit in Jefferson County Circuit Court in Louisville. Other defendants include Ramsey’s chief of staff, Kathleen McDaniel Smith; other former foundation executives; and the law firm Stites & Harbison, which served as the foundation’s legal counsel.
U of L Foundation chairman Earl Reed said the actions alleged in the suit caused “significant financial harm” to the university and foundation, the school’s investment arm. He said the lawsuit is the “right thing to do.”
“We believe it is necessary not only to restore confidence in the university, but also to recover funds that were intended to support the educational mission of the university and the success of its students,” Reed said.
The suit accuses the defendants of a series of financial improprieties that included diverting money for their own personal enrichment.
Ramsey’s attorney, Steve Pence, said Wednesday morning he had not had a chance to review the lawsuit, but said his client “has done nothing wrong. We wish the university would get on with the business of managing what has already been built, rather than tearing it down,” Pence said in a phone interview.
