FORMER FTL EXECS NAMED IN SUIT
NEW YORK — Two former executives at Fruit of the Loom, the basics-maker that filed Chapter 11 last December, have been charged with violating federal securities laws in a complaint filed by the law firm Milberg Weiss Wednesday.
William Farley, formerly chairman and chief executive officer of FTL and G. William Newton, formerly senior vice president of finance and chief financial officer, are named as defendants in the complaint, which was filed in the U.S. District Court for the Western District of Kentucky. Farley took control of FTL in 1985 and remains one of the firm’s largest stockholders.
The complaint charges that the two men are liable for misleading the investing public regarding FTL’s finances and business and artificially inflating the price of FTL’s common stock between Sept. 28, 1998, and Nov. 4, 1999. The filing also alleges that Newton improperly advanced Farley $3.5 million in FTL’s cash during 1998 to help keep Farley afloat.