Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

CEO's Over Dot Hill

Companies that OEM storage systems are usually invisible to IT managers. But one of them surfaced in a colorful way this week. The CEO of Dot Hill Systems announced today that he'll retire after 22 years of running the company -- and he's evidently chosen the family wine business over a possible parade of legal battles. (See Dot Hill Changes CEOs.)

Lambert, 52, will step down March 1 and turn control of the storage systems OEM company to Dana Kammersgard, another founder who has been Dot Hills president since 2004 and previously served as CTO. In 1984, Lambert and Kammersgard founded Artecon, which became Dot Hill after merging with Box Hill Systems Corp. in 1999.

The news comes shortly after Dot Hill, whose primary OEM customer is Sun Microsystems, got hit with a rash of class-action lawsuits resulting from accounting problems that surfaced last year.

On February 4, 2005, Dot Hill revealed it had to restate earnings for the first three quarters of 2004 because of a series of accounting problems executives blamed on an ERP (enterprise resource planning) system. The company filed the restatements last March. (See Dot Hill Dots Its I's and Dot Hill Files Financials .)

This year, law firm Lerach Coughlin Stoia Geller Rudman & Robbins LLP filed the first suit January 31, claiming Dot Hill execs violated securities law by allegedly issuing false and misleading financial information due to improper revenue recognition and inadequate internal controls. (See Lerach Coughlin Sues Dot Hill.) At least four other law firms have followed with more class-action suits.

  • 1