October 24, 2005

According to court documents filed in New York Supreme Court and obtained by thesmokinggun.com, American Express (AmEx) sued Robert McCormick last week, CEO of managed hosting provider Savvis.

McCormick is being sued for a $241,000 bill allegedly racked up on his corporate credit card at popular New York adult entertainment club Scores in October 2003. The defendant, according to the report, refuses to pay the tab and claims that only $20,000 of the charges were legitimate. McCormick was reportedly entertaining three other guests.

According to the court documents, American Express brought up the charges with SAVVIS. They confirmed that McCormick attended the club on the night in question and indicated that $20,000 in goods and services was purchased.

American Express then contacted Scores, which insisted that the charges were legitimate and provided American Express with documentation allegedly indicating that authorization for the charges was made.

McCormick was then asked by the credit card company to provide a written explanation, which was not received until September 22, 2004 after the charges again appeared on McCormick's corporate credit card.

Neither SAVVIS nor McCormick has paid American Express. Scores has already been compensated for the full amount.

Messages left with SAVVIS on Monday morning requesting comment were not immediately returned.

On Monday afternoon, SAVVIS issued a statement saying it had responded to the legal claim but would not offer any public comment. SAVVIS also reiterated that it has not made any payments to American Express related to the charges.

Source: The WHIR