MDP Statement on Tim Sheehy Abruptly Resigning as CEO of His Company
FOR IMMEDIATE RELEASE
Monday, July 1, 2024
CONTACT
rehm@mtdems.org
Helena, MT – Today, Tim Sheehy abruptly announced his resignation as CEO of his company, Bridger Aerospace, following financial difficulties and reports that former employees are suing him. Sheila Hogan, executive director of the Montana Democratic Party, released the following statement:
“Last week, stock values for Bridger Aerospace were hitting all-time lows, and today Bridger announced Tim Sheehy’s resignation. While Sheehy has made Bridger’s success a central piece of his campaign, today’s news that he will resign – coupled with $77 million in losses and his former employees suing him – raises serious questions about Sheehy’s role. Now Sheehy’s refusal to divest and remove his financial ties to Bridger Aerospace deepens concerns as he campaigns for the position that would allow him to steer lucrative contracts to benefit his own portfolio.”
BACKGROUND:
Tim Sheehy has not committed to divesting from Bridger Aerospace if elected to the Senate, creating conflicts of interest. In Sheehy’s case, a blind trust would do nothing to prevent him from using his Senate office to enrich himself and his company, unless his stocks that present conflicts of interest were divested and the proceeds were reinvested without his knowledge.
There is precedent for U.S. Senate candidates pledging to, or being forced to, divest in order to avoid conflicts of interest. In 2022, Colorado GOP Senate candidate Joe O’Dea, the CEO of a company that relied on federal contracts, pledged to divest from assets that presented conflicts. That same year then-Sen. Kelly Loeffler pledged to divest from all her individual stocks after accusations she had used nonpublic information from a senator’s briefing to make stock trading decisions.
POLITICO: “Even with a blind trust, the conflicts are not considered resolved until the original problem-creating assets are sold off.”
An ethics watchdog group said blind trusts were “not a sufficient solution” to conflicts of interest if there was not a requirement to sell the original assets.
New York Times: A blind trust only “circumvented conflicts of interest” if the assets were divested and the proceeds were reinvested without the lawmaker’s knowledge.
Last week, stock values for Bridger Aerospace were hitting all-time lows.
Sheehy’s company reported $77 million in losses amid serious financial difficulties. The company’s auditor said that Bridger Aerospace was at risk of shuttering, reporting that it “has suffered recurring losses from operations, operating cash flow deficits, debt covenant violations, and insufficient liquidity to fund its operations that raise substantial doubt about its ability to continue as a going concern.”
Sheehy’s company is facing multiple lawsuits. Bridger faced a lawsuit over a potential breach in fiduciary duty involving Bridger’s board of directors. Sheehy is also being sued for allegedly forcing his former employees to sell their shares in his company.
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