Laser Energetics, Inc. (LNGT)

[stickershock]

LED Maker Hits Laser Energetics Inc with Lawsuit:

A Philadelphia-based lighting design company launched a lawsuit in New Jersey federal court alleging its business partner Laser Energetics Inc. falsely touted partnerships with major government contractors such as CACI International Inc. to secure an exclusive licensing agreement of its technology.
Light Pod Inc. and its owner Lothar Budike said New Jersey-based LEI and its CEO Robert Battis falsely represented in 2012 that CACI and other companies had plans to invest in Light Pod’s technology if it signed over rights to its proprietary light-emitting diode driver and advanced solid state lighting fixture.

"In fact, the purported funds from investors never materialized as promised by Battis/LEI," the complaint said.

Battis allegedly told Light Pod that two CACI executives had promised startup funds to launch the LEI/Light Pod venture, which was meant to supply government militaries and the private sector with the LED fixture.

Light Pod agreed to sign the licensing contract, granting LEI an exclusive license to the lighting fixture technology, patent rights and other intellectual property rights. The agreement included a noncompete provision prohibiting Light Pod from competing with LEI.

But once the agreement was signed, Battis immediately reneged on paying promised monthly payments to Light Pod, falsely promising in text messages that he would pay up after receiving proceeds from investors, the complaint said.

"Battis, individually, and on behalf of defendant LEI made repeated false promises of payments for monthly amounts past due when he 'receives funds, wire transfers, etc.' from investors, such as CACI, which was falsely represented to be an ‘investor’ before the agreement was entered into by the parties.”

Battis owes more than $2 million in back payments to Light Pod, the complaint said.

To get Light Pod to enter into the agreement, Battis also claimed that LEI was very well funded, had sufficient resources to undertake major government contracts and had sufficient capital to market the lighting fixture in various markets, according to the complaint.

Battis also developed a tentative "business plan" projecting sales of $250 million for the lighting fixture over a seven-year period, the complaint said.

He also said he had secured a $300 million contract with the government of Saudi Arabia for a separate lighting contract, which would result in added capital for the Light Pod venture, but funds for Light Pod never materialized, according to the complaint.

LEI promised Light Pod $15,000 per month in cash and 10 percent of gross sales to government or the consumer mass market. The agreement also promised a cut of its industrial sales.

LEI won a task order to provide 15,000 lighting fixtures per year for five years to the U.S. Navy but lost the contract after he could not scrounge up the proper resources, belying its past assurances that it had sufficient capital, the complaint said.

"Battis/LEI could not meet the terms of the 'task order' because he failed to possess or secure sufficient infrastructure, people, capital, funding or support to manufacture market, sell and deliver the lighting fixtures to the Department of the Navy, despite the repeated representations, promises and assurances in this regard prior to the agreement being signed,” the complaint said.

The complaint seeks damages for breach of contract and negligence.

Phone calls and emails to Laser Energetics went unanswered late Thursday.

Light Pod is represented by Justin Michael Cohen of Richman, Berenbaum & Associates PC.

Counsel information for the defendants was not immediately available Thursday.

The case is Light Pod Inc., et al v. Laser Energetics Inc., et al, case No. 3:13-cv-02811, in the U.S. District Court for the District of New Jersey.

Plaintiff: LIGHT POD, INC. represented by JUSTIN MICHAEL COHEN
Phone: [phone]
Email: [e-mail]

Defendant]: LASER ENERGETICS, INC. represented by BRYAN MICHAEL BUFFALINO
Phone: [phone]
Email: [e-mail]
Defendant: Robert Battis represented by SCOTT I. UNGER
Phone: [phone]
Email: [e-mail]