Costa Mesa Commerce Energy Group Inc. said Friday it settled a dispute with Ian Carter, a director and the company’s former chief executive.
The settlement calls for Commerce Energy to pay Carter $3 million plus two months of Cobra healthcare insurance. Carter also keeps his option to buy 2.5 million shares of the company’s common stock at $2.50 per share. He also will keep his seat on the board.
Shares of the company, which sells electricity and natural gas, fell 8% to $2.02 in afternoon trading.
Last fall, the company put Carter on administrative leave and installed President Peter Weigand to run the company. The move came after Commerce Energy’s audit committee found that a consulting contract with an investment advisory firm founded by David Barnes didn’t reflect the services provided to the company.
Barnes later became Commerce Energy’s vice president of finance and investor relations. He resigned in the fall.
