Cahn adds allegations and drops one claim.
Moniker founder Monte Cahn has filed an amended lawsuit against Oversee.net, which purchased Moniker in 2007 from Seevast.
Cahn sued Oversee claiming that he was not properly paid under a $13 million incentive plan. Oversee has asked for most of the case to be dismissed on the grounds that it’s a simple contract dispute.
[Update: Moniker has released the following statement to DNW: "This is a legal matter that is now in the hands of the courts. Oversee has asked the court to dismiss most of the lawsuit’s claims as the suit is nothing more than an alleged breach of contract case."]
The updated complaint (pdf) has some noticeable omissions from the original, including deleting the claim that Oversee agreed to buy Moniker for $35 million as well as Cahn’s pay information.
It also omits the statement “Through his work with Moniker, Cahn became a highly respected figure in the domain industry.”
The complaint focuses on how Kupietzky allegedly promised that Moniker would get adequate marketing and public relations assistance from Oversee and that operations would be integrated “so that there was a seamless integration of software and a uniform way to respond to intellectual property disputes, litigation, audit and survey responses and complaints from customers.” Kupietzky also allegedly promised cross-selling potential between Oversee subsidiaries.
Cahn also claims that Oversee.net founder and CEO at the time Lawrence Ng told him that Moniker was understaffed pre-merger and its employees were overworked, and that Oversee would provide Moniker with more resources.
He claims these never came to fruition:
Defendants formed the intent, and actively concealed and misrepresented the true fact that they intended to fully subjugate Moniker and Cahn, taking for themselves the full benefit of Moniker’s great public reputation and industry value at the time of merger while simultaneously jettisoning and reducing Cahn’s staff, influence and ability to properly manage and lead Moniker.
Other new allegations in the amended suit include:
-Oversee restricted transactions for adult domain names which comprised a “substantial portion” of Moniker’s business before the merger
-Cahn was promised he’d report to Ng as CEO, whom he had a good relationship with. But Ng knew before the merger he’d be stepping down as CEO.
-Ng and Kupietzky purposely delayed implementing infrastructure and technology integration so Moniker couldn’t fully monitor, account for and measure its own performance levels.
-”Oversee stalled and ultimately did not obtain a California escrow license for Moniker so that it could legally perform its auctions in California, the state in which Oversee was based. This adversely affected Moniker’s ability to earn revenue through its live domain auctions.”
Cahn says that these changes led to customer dissatisfaction and customers started moving domains away from Moniker.
Despite Oversee.net’s pending motion to dismiss most of the claims in the case, the amended complaint drops only one: breach of fiduciary duty.