Savvis CEO McCormick quits after strip club scandal

Savvis CEO McCormick quits after strip club scandal

US telecoms firm Savvis Communications says it has accepted the resignation of its chief executive Robert McCormick, who is currently embroiled in a scandal relating to an un-paid American Express bill for $241,000 which he allegedly rung up at a New York strip club.

Savvis says the resignation followed an independent investigation into the matter, which - from a PR damage limitation perspective - was conveniently concluded just ahead of the Thanksgiving break in the US.

In a statement Savvis says it is in the best interest of the company to accept McCormick's resignation.

The company had suspended McCormick without pay in October after American Express filed a lawsuit against him and Savvis which claims that the $241,000 charge - which was billed to McCormick's corporate credit card two years ago - is still outstanding.

McCormick is thought to have rung up the charges during a single visit to New York's Scores nightclub while entertaining a group of business acquaintances.

Savvis has stressed throughout that McCormick did not submit the charges in question to the firm for reimbursement. Last week the company filed a motion with the New York Supreme Court to dismiss the complaint on grounds that the alleged charges were not business expenses.

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