LAWYERS have slapped a multi-million dollar law suit on Burnley Football Club director Ray Ingleby's American company.

A firm of San Diego lawyers, acting for a "major American institution" have accused Ingleby's company, Caribiner, of misleading investors to the tune of millions of dollars.

The American lawyers, Finkelstein and Krinsk, alleged in a suit filed in New York that Caribiner deceived investors by hiding internal problems within the company.

Other investors have been asked to join the Finklestein and Krinsk claim against Caribiner.

Ingleby said today: "Our company is defending the malicious, unfounded allegations vehemently and we anticipate they will come to nothing.

"These lawyers filed 12 law suits against other companies on the same day.

"The allegation says that directors withheld information from Wall Street that might have had our shares go down in order to allow us to sell shares at a higher price.

"I did sell shares, as other directors did. But I also bought 6 million dollars of stock at $24 dollars a share in May last year, two months after they said I did all that.

"If I thought things were going to hell in a hand basket, why would I have done that? It's really not a case of insider trading." He also insisted that the allegations would not affect his involvement with Burnley but admitted the law suit could have a "psychological impact around Burnley".

Ingleby added: "I can only see myself getting more involved."

Burnley chairman Barry Kilby said: "I was told there were no criminal charges involved and it is not as serious as it would seem to be in the UK. If you are not being sued in America you are not in business. I cannot see how it impacts on Burnley Football Club."

The matter is expected to be raised at tonight's meeting of the Clarets board.

Ingleby launched a bid for ownership of Burnley FC when former chairman Frank Teasdale backed a rival bid by Peter Shackleton that collapsed.

But, despite widespread public support, he could not buy enough shares to gain control as the board held firm.

And, when Kilby took over last year, Ingleby, who had already paid nearly £500,000 for around 3,500 shares from private shareholders, increased his stake to 6,000 shares to gain a place on the board. The club considers the money he paid for those 2,500 shares, a sum of £500,000, to be safe.

The implications of the civil suit are still not clear.

Ingleby is no longer chairman of New York-based Caribiner.

He said: "I decided after nine years of building the company that I wanted a new challenge.

"I remain active as a non-executive director and I hold my shares.

"I am looking for another business interest. It could be in Britain or America."

Ingleby was at Turf Moor on Thursday at the launch of the club's sponsorship packages and is still in England.

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