LeEco sued by Vizio for essentially pawning the TV maker
In two separate federal lawsuits, US-based TV-maker Vizio is going after Chinese tech conglomerate LeEco for not disclosing its financial status at the time of a potential acquisition and for mishandling “confidential customer information”.
The Verge is relaying Vizio’s damning assertions that LeEco, which went public with its dismal and deteriorating financial situation in November of last year, didn’t tell the company that the crunch was on even when the deal was being crafted through the month of July.
[..] desperately needed to either obtain the instant financial stability, credibility, and resources that a merger with Vizio would bring, or at least to create a widespread and dramatic public impression of their own financial health and well-being to grow or continue in business that would come with the announcement of such an intended merger.
One suit is addressed to the Chinese-based LeEco while another is being served to its California-based subsidiary, Le Technology.
The $2 billion transaction failed with LeEco then proposing a limited partnership with Vizio. But the end of the merger wasn’t even the end of the sins as LeEco has only paid $40 million of a $100 million termination fee written into the deal — partly in hopes of supplanting a partial payment with that partnership. But even that wasn’t successful as the LeEco wasn’t responsive in negotiations.
Just recently, LeEco’s chairman had personal assets frozen as other creditors have started coming after the company’s money.