WILMINGTON, Del. (Legal Newsline) – The former owners of a California corporation alleges the buyer of their company shares failed to pay all amounts owed.
Timothy B. Campbell, Timothy B. Cady, Mark M. Howard, and Sheilla V. Andrin filed a complaint on Aug. 21 in the U.S. District Court for the District of Delaware against National Tobacco Co. LP alleging breach of contract.
According to the complaint, the plaintiffs were the owners of California corporation Smoke Free Technologies, doing business as Vapor Beast. On Nov. 17, 2016, the suit states the plaintiffs sold their shares in the company to National Tobacco in 2016 and under the agreement, were to receive funds by May.
The suit states under the agreement, the defendant was to pay $4 million to the plaintiffs in cash at closing and $19 million within 14 days of closing, plus $2 million on the 18-month anniversary of the closing date. The suit states the defendant was obligated to release a $2 million holdback amount on the closing date anniversary as an escrow account.
They allege the defendant has improperly held the holdback amount and breached the agreement.
The plaintiffs request a trial by jury and seek judgment for damages in excess of $715,962.39, plus all costs, attorneys' fees, prejudgment interest, other fees, and further relief as the court may deem just and proper. They are represented by Elizabeth S. Fenton of Saul Ewing Arnstein & Lehr LLP in Wilmington, Delaware.
U.S. District Court for the District of Delaware Case number 1:18-cv-01282-UNA