Rich files damages claims

Graham Rich, the former managing director of Morningstar in Australia and New Zealand is preparing to head back into court to make a multi-million dollar claim of damages over his dismissal from the research group last year.

Rich, who was dismissed by Morningstar last Novemeber after a dispute with its United States parent, Morningstar Inc, will make a preliminary appearance in the Supreme Court in Sydney on July 27. A full hearing is likely to be held towards the end of the year.

It is understood Rich will sue the five Chicago-based directors of Morningstar (the Austalasian company), as well as Morningstar Inc itself for damages as well as for oppression of a minority shareholder.

Before his dismissal, Rich, through his company Fiduciary, owned about 40% of Morningstar's business downunder.

Last November Rich filed an injunction in the Supreme Court in an attempt to thwart Morningstar Inc's attempts to bring about his dismissal.

But the court ruled against Rich after Morningstar Inc claimed that it would hold back crucial funding for the group's Australian operations if Rich continued as managing director, potentially pushing Morningstar into liquidation.

It is understood Rich will now argue that the failure of Morningstar Inc directors to approve a similar capital injection last September, two months before he was dismissed, severely impeded his ability to function as managing director.

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