Jewish Israeli, US businessmen locked in lawsuit over cable tech
According to the lawsuit, entities linked to Levi had contracted with an Austrian entity to find licensees for their new technology throughout the world.
By JERUSALEM POST STAFFMiami(photo credit: INIMAGE)
Israeli businessman Yair Levi is at a critical point in his lawsuit against Miami Jewish businessmen Michael and David Adler for alleged fraud.The case, which could be worth tens of millions of dollars and could set key precedents regarding punitive damages, involves a cutting-edge technology for a cleaner, faster and less expensive replacement for traditional copper cable.It also takes place as the Adlers seek a public vote and affirmation on November 4 authorizing them to develop the billion-dollar Miami Riverside Center project.At a hearing last week, a Florida state court initially rejected Levi’s attempt to obtain punitive damages, while leaving the door open for him to make the claim later once the case has been further clarified.There are additional, important hearings scheduled for October and November.Levi contends that the Adlers defrauded him.According to the lawsuit, entities linked to Levi had contracted with an Austrian entity to find licensees for their new technology throughout the world.Levi’s group found the Adlers on the Austrians behalf and was due to receive royalties of future profits from their joint business. He contends that they cut a deal directly with the Austrians in order to avoid having to pay Levi’s group.In 2013, the Adlers and the Austrians reached an impasse which led to litigation. This included Levi’s group being given the right to an ownership interest in one of the Adler’s key entities, which would be using the cable technology. What happened next is the heart of the lawsuit.Levi’s group says that the Adlers eviscerated its ownership interest which they had promised them in a 2013 letter agreement.
The Adlers say that Levi’s group had to undertake certain formal actions to convert its right to the ownership interest into an actual interest.Moreover, Levi’s group claims that despite numerous demands, the Adlers never provided any of the financial information or progress reports, nor did they honor any of the group’s payment and board appointment rights. They say that they cannot even finalize the full extent of their damages until the Adlers provide this information.The Adlers claim that they do not need to provide the information, that there is no basis for punitive damages and that only one of their corporate entities can be sued – not they as individuals.Levi’s group responds that the Adlers controlled all of the relevant entities, which means that they are liable for punitive damages for repeated duplicity.The court will soon have to decide.
