On March 13, 2014, the Company filed its own operative First Amended Cross-Complaint in the Cathaya Lawsuit (the "ZAP Cross-Complaint") against Abdou and Schneider, alleging causes of action for (1) breach of fiduciary duty; (2) conversion; (3) imposition of a constructive trust; and (4) an accounting. By the ZAP Cross-Complaint, the Company is, among other things, pursuing Schneider and Abdou for return of inventory and assets that were removed from the Company's warehouse, as well as cash that was redirected to another account.
The Court set January 15, 2015 as the trial date for all parties' claims asserted in the Cathaya Lawsuit.
On May 15, 2014, Abdou's and Schneider's counsel filed a motion to be relieved as counsel in the Cathaya Lawsuit, which was granted on August 4, 2014. Consequently, Abdou and Schneider were unrepresented in the Cathaya Law suit as of August 4, 2014
On June 6, 2014, the Court entered an Order Granting Plaintiff's Motion for Sanctions due to Violations of Court's Discovery Order, which imposed certain monetary and evidentiary sanctions against Abdou and Schneider, including, among other things, precluding Abdou and Schneider from calling certain witnesses and offering evidence of or relating to certain issues at trial.
