The Olivia Cruises lawsuit was a 2007 wrongful termination and shareholder dispute filed in San Francisco Superior Court by four former senior executives, led by ex-CEO Amy Errett, against the lesbian travel company and its founder, Judy Dlugacz. Olivia countersued Errett for mismanagement, and the parties settled out of court in 2009 on undisclosed terms.1The Guardian. Olivia Travel Lesbian Cruise
Who Sued and What They Wanted
Errett had been brought in as CEO in November 2002 to lead Olivia’s next phase of growth. She assembled a leadership team that included CFO Dianne Dubois, chief business development officer Brad Lande, and chief marketing officer Sabrina Riddle. All four were terminated in March 2007, or, as they later alleged, forced to resign.2The Advocate. Olivia Out at Sea
The four filed suit in San Francisco Superior Court alleging wrongful termination and seeking several million dollars in unpaid severance, deferred bonuses, and stock options. Together they held roughly 30% of Olivia’s shares and demanded a fair buyout of that stake.2The Advocate. Olivia Out at Sea Forbes later reported that Errett had valued her own ownership interest at $30 million at the time of the suit.3Forbes. How Amy Errett Made Madison Reed the Hair Color House Party Women Want Most The plaintiffs also alleged that Dlugacz had used company funds for personal expenses and paid herself excessive compensation.
Errett filed a separate civil action to force Olivia to dissolve entirely. On October 18, 2007, the court denied the dissolution request and rejected the former employees’ motion for leave to amend their filing.4The Advocate. Olivia Presses Forward Despite Lawsuit
Olivia’s Countersuit Against Errett
Olivia filed a cross-complaint accusing Errett of grossly mismanaging the company from 2002 to 2007 and scheming to take control from Dlugacz. According to Dlugacz, Errett had pushed to build Olivia into a broader lesbian lifestyle brand with a magazine, an online dating platform, a co-branded credit card, and cross-promotional deals; those initiatives, she said, failed to generate meaningful revenue and cost the company millions.2The Advocate. Olivia Out at Sea The countersuit also alleged breach of financial duties tied to the repayment of a company loan.4The Advocate. Olivia Presses Forward Despite Lawsuit
Court filings cited internal emails in which Errett had reportedly called Dlugacz “a fucking idiot and megalomaniac” and written that “D day is coming” and “she will get hers.”2The Advocate. Olivia Out at Sea
Public Fallout During the Litigation
The dispute played out publicly within a customer base that had followed Olivia for decades. Worried customers posted on the company’s website questioning its financial health and the future of trips they had already booked. Dlugacz responded that the company was recovering from two years of losses she attributed to Errett’s expansion strategy, and announced that Olivia was abandoning the lifestyle-brand plan to refocus on its core cruise and resort business.2The Advocate. Olivia Out at Sea Lisa Henderson was brought in as general manager to replace Errett.5The Advocate. Olivia Names New CEO
How the Case Ended
The lawsuit never reached trial. In 2009, Olivia and the four former executives reached a confidential out-of-court settlement, and the terms were not disclosed.1The Guardian. Olivia Travel Lesbian Cruise Two years of litigation closed without a public ruling on the merits of either side’s claims.
What Happened to the Parties
Dlugacz remained at Olivia and continued running the company on its original charter-the-whole-ship model.6Olivia.com. Legacy Errett later worked as a venture capitalist at Maveron and then founded Madison Reed, a direct-to-consumer hair color company.7Kara Goldin. Amy Errett No further legal disputes involving Olivia have been publicly reported.8Dallas Voice. Olivia Travel 35 Years Cruise