Jeffrey LeRose has resigned of chairman of the board at Smart Online, the company said Friday morning.
LeRose was replaced as chairman by David Colburn, who recently took on the job as chief executive officer. Colburn had been a member of the board and was asked to take over day-to-day management of the firm after a Securities and Exchange Commission investigation led to the ouster of the former CEO.
Michael Nouri resigned in September. He, a brother and four securities brokers face securities fraud charges.
On Thursday, an Oklahoma law firm, Federman & Sherwood, said it had filed a class action law suit in a federal court in North Carolina that alleges that the company artificially inflated the value of its stock from May 2, 2005, through Sept. 28 of this year.
The law firm of Pulley Watson King & Lischer in Durham also filed a suit against Smart Online, The Triangle Business Journal reported.
Smart Online (OTCBB: SOLN) provides business solutions through a software as a service model.
Rose resigned “citing his need to give his full attention to his current personal and business affairs,” the company said in a statement. LeRose founded and owns Research Triangle Software in Cary. He had led Smart Online for two years.
“This is a bittersweet moment for me to lose a valued board member who has served Smart Online through challenging times over the last two years,” Colburn said in a statement. “We appreciate Jeff’s contributions, leadership and his independent perspective at crucial times for the company.”
LeRose said the experience “afforded me the ability to further my board experience and further appreciate the importance of independence.”