A technology company that was accused of purchasing intellectual property and assets in a deceptive manner was denied its motion to dismiss a complaint against it for breach of contract and fraud. The plaintiffs alleged that the technology company deceived them, inducing them to sell their assets and intellectual property with promises that the company would maintain and expand the WiFI network that the plaintiffs ran when the technology company intended only to use the IP and assets to attract new rounds of investment. The court found that the technology company failed to develop its arguments in its motion and that its failure to elaborate and cite authority waived its arguments.
Chirstiaan Cilliers, Daphne Cilliers, World WiFi Network, Inc., and Sunrise Global Marketing, Inc. sued Cobalt Holdings, Inc., in federal court alleging fraud, breach of contract, and several state-law claims. The plaintiffs claimed that Cobalt fraudulently induced them to enter into agreements to sell all of their business assets and intellectual property, consisting of a roaming WiFi network it had developed and maintained in several Caribbean countries. The plaintiffs alleged that Cobalt told them that it intended to further develop the WiFI network when it, in fact, held no licenses to operate WiFI networks in the Caribbean and wanted to acquire the network and intellectual property solely to attract investors as part of a planned round of funding. Continue reading ›