Former CEO of Mace Security International, Inc. Wins over $4 Million in Wrongful Termination Lawsuit

May 5, 2010 - PRLog -- Louis D. Paolino, Jr., by his attorneys, Pozzuolo Rodden, P.C., of Philadelphia, Pennsylvania, announces today, May 4, 2010, that a three member arbitration panel of the American Arbitration Association issued an Award of Arbitrators in favor of Louis D. Paolino, Jr. and against Mace Security International, Inc., ruling that the Board of Directors of Mace Security International, Inc. wrongfully terminated Mr. Paolino as the Company’s Chief Executive Officer on May 20, 2008.

On May 20, 2008, Mace Security International, Inc. terminated Mr. Paolino’s employment as Chief Executive Officer for alleged willful misconduct. The Arbitration Panel ruled that Mr. Paolino did not commit any acts of willful misconduct, denied the Company’s counterclaims against Mr. Paolino and awarded Mr. Paolino his full severance payment and interest in the amount of $4,147,912 under the employment agreement with the Company.

The Arbitration Panel found that: (a) Mr. Paolino “was an experienced and successful chief-executive officer”; and (b) “engineered the structure of Mace Security International, Inc. as a publicly traded company by combining privately held businesses with a traded shell corporation”. Mr. Paolino served as Chief Executive Officer and Chairman of the Board of Directors of Mace Security International, Inc., a Nasdaq-listed company for 9 years. The Arbitration Panel found that the newly constituted Board of Mace Security International, Inc., elected by the shareholders in December 2007, “had only limited experience” and, “at the behest of a hedge fund principal, was focused on cutting costs” while Mr. Paolino wanted to “achieve success in part through further expansion” of the Company’s internet business.  The Arbitration Panel found that Mr. Paolino was correct – the cost cuts Mr. Paolino “said were impossible could not be achieved”.  The Arbitration Panel further found that the Company’s new Chief Executive Officer, Dennis Raefield and its Board “were unable to cut costs without damaging the Company’s revenue and profits”.

The Arbitration Panel awarded Mr. Paolino damages in the amount of $4,147,912, including his full severance payment plus interest, and restored 1,769,682 of stock options wrongfully rescinded by the Board of Directors in connection with his wrongful termination. The Arbitration Panel also awarded Mr. Paolino monetary compensation on his libel claim against the Company for its false statements relating to Mr. Paolino’s termination. Mr. Paolino was represented by Joseph R. Pozzuolo, Esquire, Judith P. Rodden, Esquire and Lesley M. Ibanez, Esquire.

Prior to Mace, Mr. Paolino was the Chairman, Chief Executive Officer and President of Eastern Environmental Services, Inc., a Nasdaq-listed company, where he led a management team in acquiring over 60 companies, raising over $200 Million Dollars in capital and increasing sales from approximately $7 Million Dollars to over $450 Million Dollars in less than 2 years. Under Mr. Paolino’s leadership, Eastern Environmental was sold to Waste Management, Inc. in December 1998 for approximately $1.3 Billon Dollars.

Mr. Paolino has over 30 years of extensive business experience and is a graduated civil engineer from Drexel University in Philadelphia, Pennsylvania.