MYNORTHWEST NEWS

Report: Gravity Payments trial reveals CEO exaggerated statements

Jun 2, 2016, 7:55 AM | Updated: Jun 9, 2016, 1:12 pm

Dan Price, wealth tax billionaires...

Gravity Payments CEO Dan Price. (Gravity Payments screengrab)

(Gravity Payments screengrab)

Dan Price, the CEO of Gravity Payments, testified in court this week for a dispute with his brother and business partner, which revealed that not everything the charitable CEO told the press has been entirely true.

Price had made headlines when he increased his company’s minimum wage to $70,000 a year. The Puget Sound Business Journal reports Price was accused by his brother Lucas of lying to the press about the details surrounding the high-profile minimum wage hike. Specifically, statements that Price mortgaged property, closed retirement accounts and sold stocks in order to make the numbers work in favor of the new wage.

But Price admitted during a deposition that he did none of those things. Rather, Price said that he was willing to do all those things if they became necessary. That deposition happened over the fall, and was a video of it was played for the court in early June.

Related: Seattle CEO pushing for $28 minimum wage, only pays $9

Another point raised by brother Lucas and his attorneys was the issue of when Price found out about the lawsuit filed against him which brought him to court this week. Price had previously said that he was notified about the lawsuit after he raised the company wage. It turns out, Price admitted, he found out two weeks prior to the wage hike. Price, however, testified that he was advised the lawsuit would not go anywhere.

Lucas alleges that Price overpaid himself at Gravity Payments. When he raised the minimum wage at Gravity Payments, he was making about $1 million a year.

The brothers started the company together in 2004. Price was 19, his brother was 24. But as time went on, Dan took more control of the business, and Lucas maintained a minority share of the company at 32.5 percent — Price owns 67.5 percent. Lucas is suing to be bought out of his share of the business which could be valued up to $35 million.

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Report: Gravity Payments trial reveals CEO exaggerated statements