BUFORD,Bruce Smith is reassuming duties as chief financial officer at Theragenics on an interim basis after an internal dispute among the company’s top executives.

Smith served as executive vice president for strategy and business development. He had been Theragenics’ CFO from 1989-2002.

The move was announced Sunday as part of a management shakeup.

Theragenics’ CFO and chief counsel resigned after an internal investigation of complaints the two had made about W. Christine Jacobs, the firm’s president and chief executive officer.

Theragenics is a developer of cancer treatment devices such as TheraSeed. It is in the process of wrapping up the $25 million acquisition of a medical device firm based in Oregon.

“James MacLennan and Tracy Caswell, the Company’s Chief Financial Officer and General Counsel, respectively, recently reported to the Board of Directors allegations regarding actions taken by the Company’s Chief Executive Officer that they viewed as inappropriate,” Theragenics said in a statement released Sunday. “The allegations did not relate to the accuracy of the Company’s financial statements or prior public disclosure by
the Company.”

Theragenics said a subcommittee of the firm’s board investigated the allegations.

“Following receipt and evaluation of the subcommittee’s report, the Board of Directors has determined that no violation of law or rule or regulation applicable to the Company or of any duty owed to the Company has occurred,” the company added.

Patrick Flinn, chairman of the audit committee, added: “We take allegations of misconduct very seriously. The process worked the way it should have and is now complete with no violations found.”

MacLennan and Caswell said they would not “participate further in the preparation of the Company’s public disclosure” and resigned, the company added.

Theragenics (NYSE: TGX) has scheduled a conference call for today to discuss the acquisition of CP Medical.

Theragenics: www.theragenics.com