Story ID: 
Verijet Sues Former Board Member
By: Mark Huber
Caption: The company accused an initial investor and former board member of trying to bankrupt it
Word Count: 383
Financially beleaguered Cirrus Vision Jet operator Verijet is accusing an initial investor and former board member of trying to bankrupt the company. In a lawsuit filed last month in Florida's Dade County Circuit Court, Verijet charges that Mark Kahan, a Washington, D.C.-based attorney—and the former vice chairman, COO, and general counsel of Spirit Airlines—created “obstacles” that “diverted its path.”
They allegedly included failure to disclose pecuniary interests in half a dozen aircraft leases to Verijet, imposing predatory “take it or leave it” terms for those leases that were “dramatically skewed” and only agreed to “under extreme duress.” These actions allegedly demonstrated Kahan’s failure to fulfill his fiduciary responsibility to the company as a board member.
Verijet also alleges that Kahan dissuaded potential clients from purchasing Series A memberships from the company and instead encouraged them to enter into deals with him to lease more aircraft to Verijet. He also is charged with colluding with other board members to attempt to remove founder Richard Kane and former COO and CFO Steve Wagman and advising Cirrus that those individuals “were incompetent and not trustworthy.” (Wagman left the company in 2022 and sued it earlier this year for failure to make separation payments.)
The company alleges that this was part of a concerted effort for Kahan to drive the company into bankruptcy and obtain its assets, going so far as to hire bankruptcy counsel to explore the possibility.
Kahan served on Verijet’s board from March to December 2020 and leased the company its initial aircraft, having been introduced to the company as an “individual with substantial assets.” Before that, he held a variety of positions related to aviation and aviation law. From 1978 to 1982, he was the associate director of the U.S. Civil Aeronautics Board. He currently serves as an adjunct professor of government at the American University in Washington.
Verijet has seen its operating fleet of Cirrus SF50 jets shrink from a high of 23 to three. It is currently being sued for nonpayment of aircraft leases and maintenance services. The company’s attempt to go public via a special-purpose acquisition company failed earlier last year. Kahan controls some of the entities currently suing Verijet for nonpayment of aircraft leases.