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DEFAMATION LAWSUIT AGAINST USDCAB!!!
Law360, Dallas (April 10, 2013, 3:59 PM ET) -- Biofuel developer Algae International Group Inc. on Monday launched two defamation suits against the National Algae Association and the University of California, San Diego in Texas state court, alleging the group and school trashed its business reputation in emails and through an NAA allegation it violated copyrights.
The suit against the NAA claims the group began contacting Algae International’s business partners with accusations the company misappropriated NAA copyrights, trademarks and proprietary material shortly after Algae International leased property in California to begin a large algae farm, allegedly in retaliation for the company not joining the trade group. Algae International also claims after it sent out a press release in March about its work with a private university, the University of San Diego, UCSD damaged its reputation by sending out emails clarifying the state school and its Center for Algae Biotechnology were unaffiliated with the company.
Algae International says in the suit it formed a joint venture with Pacific Oil Products Inc. in April 2012 to lease land from the city of Tulare, Calif., on which it planned to launch an algae farm and processing plant, to develop pharmaceuticals, biofuels and livestock feed, then quickly found itself on the receiving end of negative comments from the NAA and its director, Barry Cohen.
“Almost immediately after the execution of this lease, defendants Cohen and National embarked upon a campaign of libelous, slanderous and/or defamatory communications concerning AIGI and its partners, apparently in retaliation for AIGI’s failure and refusal to submit to Cohen and National’s threats and coercive conduct trying to get AIGI to become a member of National,” the suit says.
NAA spokeswoman Lisa Cohen said Wednesday the group has not yet been served and declined comment.
Algae International says NAA’s complaints to its business partners and the city about alleged copyright violations constitute tortious interference with its business relationships and business disparagement, causing unspecified economic harm.
The Addison, Texas-based company in November merged with Savanna East Africa Inc. and on April 1 said in a statement it is in “active negotiations with numerous institutional investors” to structure the financing of its planned commercial production capacity. In a March press release, Algae International touted its innovation in extracting oil from a special strain of algae, which it said it achieved through research with the private university, USD.
After the March announcement, UCSD’s algae biotechnology lab director, Wendy Stegman, sent out e-mails to stock bloggers stating the university had never worked with Algae International and put a red-lettered disclaimer up on its website, still visible today, denying any affiliation with Algae International’s work, the suit says.
Algae International contends Stegman’s e-mail and the large disclaimer are false and misleading, and were expressly intended to harm its business prospects and reputation.
UCSD and Stegman did not immediately respond to requests for comment Wednesday.
Algae International is represented by Christopher A. Payne of Law Offices of Christopher A. Payne PLLC.
Counsel information for the NAA and UCSD was not immediately available.
The cases are Algae International Group Inc. v. Cohen et al., case number DC-13-03930, in the 14th Judicial District Court of Dallas County, Texas, and Algae International Group Inc. v. Stegman, et al., case number DC-13-03933, in the 44th Judicial District Court of Dallas County, Texas.
--Editing by Jeremy Barker.
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