Tritt claims that upon his 2005 signing with the new label, Termini told him that he was "a man of substantial wealth" and would be pouring his personal fortune into the new venture. But a news report surfaced recently claiming Termini actually used more than $8 million in finances from Haven Healthcare, a Connecticut nursing home chain of which he is owner and CEO. That chain is now in bankruptcy, resulting in some nursing homes having their heat turned off and others severely understaffed. Additionally, several serious patient-care violation complaints have been filed against at least ten of the homes.
In addition, Tritt is also charging that Termini mismanaged the release of his recent album, 'The Storm.' He accuses the CEO of misspending advertising and promotion money, and firing the majority of the label's employees just after the album's first single was released. Tritt claims he spent more than $300,000 of his own money to promote the album and was never reimbursed by the label. He's also seeking $190,000 in royalty money owed to him. The two-time Grammy winner now wants out of his contract with Category 5 and is asking a judge to appoint an outside party to take over management of the company. Category 5, also home to country legend George Jones, is expected to close its doors in a matter of days.