Mr. David Guzan, the former CEO of pharmacogenetics laboratory Renaissance RX, has filed a lawsuit against Renaissance’s founder, Dr. Tarun Jolly, alleging Dr. Jolly failed to transfer a 1% ownership stake in Renaissance potentially worth $2.5 million to Mr. Guzan as promised.
Altogether there are a total of four claims in the suit, three of which do not involve Renaissance, but are nonetheless interesting in that they all involve money owed to Mr. Guzan by entities affiliated with Dr. Jolly.
Louisiana Pain Specialists
Mr. Guzan used to be the CEO of Louisiana Pain Specialists (LPS), a pain medicine practice in New Orleans founded by Dr. Jolly, who is board-certified in pain medicine and anesthesiology. On September 30, 2014, Mr. Guzan gave LPS 90 days notice that he planned to stop working for LPS. LPS allegedly asked Mr. Guzan to resign from LPS effective November 13, which he did.
Mr. Guzan’s contract with LPS said if he gives 90 day notice but is asked to resign sooner than the 90 day period, he is supposed to receive all compensation and benefits as if he had stayed the full 90 days. Mr. Guzan claims he is owed $382,615.36 in salary, benefits and bonus, but has thus far not been paid, despite written demands (Claim #1).
Crescent View Surgical Center
Mr. Guzan is also the Principal of Surgical Continuum (SC) , which according to Mr. Guzan’s LinkedIn page, is a “Consulting, Development and Management Company for Office Base (sic) Surgery Practices, Surgery Centers, Surgical Hospitals and Hospital Joint Ventures with Physicians”.
SC entered into an agreement with LPS in July 2012 to build an outpatient surgical center that would be managed by a company half owned by LPS and half owned by SC. Management fees were to equal 6% of monthly gross revenue “on a cash basis”.
In addition to the management fees, the agreement also stated SC would receive a 3.33% ownership stake in CVSC that would increase to a total of 10% after the end of the third year of operations.