After watching his reputation get dragged through the dirt in a lurid, yearlong legal drama, a former CEO has scored an $11 million payday.
Carl Grimstad, the ousted chief executive of payment processer iPayment, landed the fat settlement after battling allegations that he looted half a million dollars from the company’s coffers to fund his wife’s shopping sprees — as well as his own alleged penchant for strip clubs and escorts.
“While [Grimstad] is saddened that he and his family were subjected to the false and meritless allegations made against them by iPayment in what can only be described as a retaliatory lawsuit, he is pleased with the settlement,” a spokesperson for Grimstad told The Post.
Grimstad will get a cash payment of $3 million and $4 million in preferred stock.
He also will be retained as a special adviser to iPayment, earning $220,000 a month for the next 18 months, court documents show.
Grimstad sued iPayment last September in New York state court, claiming he was wrongfully terminated in a plot orchestrated by the company’s hedge-fund creditors led by New Jersey-based Chatham Asset Management.
IPayment fired back in February, when it filed an explosive suit against Grimstad and his wife, accusing them of using iPayment as their personal “piggybank”.
The suit, filed in Manhattan Supreme Court, painted Grimstad as an oddly benevolent thief with a weakness for women.
Grimstad’s wife Jessica “Gigi” Grimstad — “a bit player on the New York social scene,” according to court papers — went on a $70,000 shopping spree at swanky shops including Bergdorf-Goodman on the company dime, iPayment alleged.
Meanwhile, the other ladies in Grimstad’s life — a Las Vegas escort and her mother — scored jobs at iPayment, the company said.
That was after the escort, who met Grimstad at a Las Vegas strip club called the Spearmint Rhino in 2007, got invited back to Grimstad’s hotel room, where the exec allegedly offered her $4,000 “in exchange for certain sexual activities,” the company’s suit said.
Both the escort and her mother worked at iPayment for four years, with the escort getting a $37,000 severance package after being fired in 2012, court papers say.
“The Company recognizes that the Grimstads believe that the allegations in the lawsuit were false,” iPayment said in a statement on the settlement.
“[IPayment] regrets any distress that may have been caused to the Grimstads by the public filing of the litigation against them.”