Video technology firm Piksel, formerly known as KIT Digital, has commenced legal action against Australian investment firm Invigor Group over an investment it made in the firm almost two years ago.
The suit stems from KIT Digtial’s US$2 million (€1.5 million) cash acquisition of all Invigor’s assets in June 2012.
Piksel is accusing Invigor (formerly known as Hyro Limited) of making “fraudulent, negligent, and misleading representations regarding its customer relationships, its business outlook, and its cash tax liabilities,” with the suit part of a review of partnerships and agreements by Piksel’s new leadership team.
“Invigor claimed it was selling a US$25 million revenue business with happy customers. Invigor also claimed it had no outstanding tax obligations. In truth, Invigor was a business less than half that size and it was losing customers at a very rapid rate. Invigor also had significant undisclosed tax obligations in Australia and New Zealand,” said Piksel COO Allan Dunn.
Piksel is seeking damages and costs from Invigor, and is an amendment to litigation KIT Digital previously commenced in its reorganisation case in the US Bankruptcy Court for the Southern District of New York.
KIT Digital filed for voluntary bankruptcy protection last year in a bid to “cleanse itself of legacy issues, including financial, legal and regulatory matters.” The firm rebranded itself as Piksel and relaunched the business at IBC in September.
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01 December 2020 @ 16:01:00 UTC