In the lawsuit, Tharpe, alleges that the NWA is committing insurance fraud by having a policy that designates it covers gatherings for 100 members when obviously there have been events drawing well over that amount. Tharpe claims in the suit that the NWA willingly misrepresented themselves to their insurance company, putting Tharpe and others at risk legally while using the policy.
The lawsuit also claims that the NWA fraudulently induced members to join the organization, including Tharpe, by claiming that they would be covered by the NWA's insurance and that NWA Executive Director Bob Trobich (who is an attorney) led a conspiracy among NWA members by discussing this and pushing other officers to go along with the alleged fraud. The suit also claims that the Board of Directors, in conjunction with Trobich, threatened members with fines and ejection from the NWA if questions regarding the insurance were pushed.
The lawsuit reads as if it is specifically targeting Trobich (more on that below), citing that he has a responsibility both as an attorney and as the leader of the organization to do the honest, right thing by its members. Tharpe is claiming that as a member, he has the right to file a lawsuit against third parties, for the good of the organization, thus why he is suing a number of other NWA members. Tharpe is also seeking an independent audit of the NWA bank accounts to search for financial misgivings of the company's funds.
Tharpe is seeking damages, although it notes in the filing that he does not seek a sum above $49,000.
The lawsuit was filed in Tharpes's home state of Texas, using the fact that NWA member and representative Ken Taylor also resides in Texas as his reasoning for why that State's court would be the proper venue.
As far as why this lawsuit was filed as opposed to handling the matters internally between partners, one source believed it was Tharpe's very public attempt at a coup to force out Trobich and others and gain control of the NWA, in whatever form it still exists in 2012, and run the organization. The same source noted that Tharpe had attempted to get other members to side with him against Trobich and when that didn't happen, they were added to his lawsuit.
The source cited that Tharpe was making noise that he was tired of seeing Trobich continue to do "nothing" with the brand, citing that only one member had regular TV (Dave Marquez in California) and that the organization had no strategy or force guiding it.
Obviously, the claims are a very serious one, so it should be interesting to follow how much of this plays out in a public courtroom.
In speaking to a NWA representative earlier today, PWInsider.com was issued a firm "No comment" on the matter.
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