Featured Domains

register.to

Thought Convergence Amends Lawsuit Against Westerdal

Amended complaint includes new parties and allegations.

Thought Convergence (TCI) has amended its complaint against Jay Westerdal and other parties related to TCI’s acquisition of Name Intelligence, LLC (NIL).

The amended complaint names Name Intelligence, Inc., a holding company owned in part by Westerdal, and DOTMOVIE, Westerdal’s company that plans to introduce a .movie top level domain name.

According to the amended complaint, TCI has now paid the full amount due for its second payment for the acquisition. TCI paid $4 million on May 8, 2009, and transferred $1.5 million into an escrow account pending outcome of the lawsuit. The complaint states:

TCI continued to investigate the amounts of its set-off claims between May 8, 2009 and May 26, 2009. That investigation revealed that much of the misconduct, while egregious and startling, was difficult to monetize and continues to be a moving and growing target. While the amount of set-off is likely to be well in excess of $1.5 million, a final determination will required additional time and retention of consultants and experts in order to fix an amount to its substantial claims.

Therefore, TCI released the $1.5 million from the escrow account on May 26, 2009, and decided it will pursue set-offs and damages in the litigation.

The complaint also adds new allegations that Westerdal breached his fiduciary duty to the company:

J. Westerdal breached his fiduciary duties to TCI and NIL by meeting with NIL Businesses’ employees and falsely informing them, among other things, that (i) TCI would be unable to make payroll; (ii) TCI was insolvent; and (iii) J. Westerdal would get his company back.

Furthermore, TCI alleges that Westerdal “breached his fiduciary duties by disclosing TCI and NIL confidential information to the public.”

A summons dated May 27 gives the defendants twenty days to answer the complaint.

You may view the May 27 amended complaint here (pdf).

The most in-depth analysis of the global domain market

Get Our Newsletter

Stay up-to-date with the latest analysis and news about the domain name industry by joining our mailing list.


No spam, unsubscribe anytime.

Reader Interactions

Comments

    Leave a Comment

  1. Domain Investor says

    Well, it appears Jay won round 2.

    Now, they are going after him for his comments.
    I don’t think that will go anywhere.

    Jay had good luck when he sold the company when he did.
    It looks like he still must own that lucky horse shoe since they paid the second installment quickly.

    I guess Trafficz won’t make another foolish acquisition anytime soon.

  2. Domain Investor says

    Andrew – I was referencing the fact that TZ paid the second installment. That is the most important part of the complaint.

    All of the “he did, he said” will eventually disappear. If they paid that means they know they don’t have a solid case.

Domain Name Wire | Domain Name News
%d bloggers like this: