Cemetery business faces new lawsuit
By Jim Dooley
Advertiser Staff Writer
A class-action lawsuit on behalf of an estimated 1,000 customers of the troubled RightStar cemetery businesses was filed yesterday in state Circuit Court.
The suit repeats many of the allegations contained in an earlier suit filed by the state attorney general's office against the RightStar companies, its former officers and four former trustees, including former Gov. John Waihee. The trustees managed more than $20 million in "pre-need" and "perpetual care" trust funds on behalf of RightStar customers.
The new lawsuit and the attorney general's suit allege that RightStar officials and the trustees improperly removed millions of dollars from the trust funds and transferred millions more in trust funds to a Mainland real-estate investment.
State Rep. Scott Saiki, D-22nd (McCully, Pawa'a), is one of the attorneys who filed the class-action lawsuit. Two former RightStar customers are named as plaintiffs in the suit, but Saiki said an estimated 1,057 RightStar customers could have been adversely affected by the companies' business practices.
The RightStar companies, their former officers and the one-time trustees have all denied wrongdoing. Attorney James Wagner, who represents the companies and former officers, said he had not seen the new lawsuit and declined comment. Attorney William McCorriston, who represents Waihee and the other trustees, could not be reached for comment.
Diane Hastert, attorney for Guido Giacometti, a court-appointed receiver who is now running the companies as a result of a state court foreclosure lawsuit, declined comment.
RightStar owns and operates several cemeteries, including Valley of the Temples Memorial Park on O'ahu, Maui Memorial Park on the Valley Isle and Homelani and Kona Memorial Parks on the Big Island.
Reach Jim Dooley at 535-2447 or jdooley@honoluluadvertiser.com.
Correction: Attorney James Wagner represents the RightStar companies and its former officers. His last name was incorrect in a previous version of this story.
