A former CEO of Norwegian Cruise Line plans to sue British billionaire Richard Branson and the Virgin Group claiming that Virgin stole his ideas and business plan for a new cruise line.
Colin Veitch and his VSM Development company has filed a lawsuit for more than $300 million in damages after Virgin agreed to move forward with Veitch’s plans for a new cruise line when first mooted in 2011.
Veitch claims he had secured financing to build one ship and had agreed terms with Virgin whereby he would be compensated by up to $315 million based on projected profits over a 10-year period.
The lawsuit alleges Virgin then renegotiated the agreement so that Veitch effectively became an employee with no guarantee of the previously agreed share of profits.
Veitch is also seeking to shut down Virgin Cruises.
“It was his idea, he spent a year of his life doing it, and as a result he gets nothing,” said Veitch’s attorney Jeff Gutchess.
Responding to the complaint, a Virgin spokesman said: “We strongly believe the claim has no merits.”
In December, Branson established Virgin Cruises, headed by former Disney Cruise Line executive Tom McAlpin as CEO, with plans to build two ships with investment from Bain Capital.
