Richard Branson and Virgin Sued by Colin Veitch over Cruise Deal

The former CEO of Norwegian Cruise Line, Colin Veitch, is suing Richard Branson and his Virgin Group for $300 million, claiming Branson and Virgin stole his ideas and business plan to enter the cruise industry.

The lawsuit was filed in federal court in Miami today on behalf of Colin Veitch and his VSM Development company, seeking more than $300 million in damages and asking a judge to stop the London-based Virgin from going forward with its recently announced cruise line.

Veitch left Norwegian in 2008 after eight years as CEO.

According to the lawsuit, it was Veitch who brought the plans to Virgin, proposing to build two mega ships which would allow the company to gain a foothold in the industry.

According to reports, the May 2011 agreement between Virgin and Veitch forecasted earnings between $427 million and $483 million over 10 years if the venture performed as planned. Veitch stood to make $315 million.

However, as things progressed, Virgin allegedly changed the terms of the deal, making Veitch an employee rather than an owner and founder, and the agreement crumbled.

 
 

 

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