Piksel Files Suit Against Invigor Group
Suit Arises From KIT digital's Acquisition of Hyro Limited
NEW YORK, NY -- (Marketwired) -- 02/09/14 -- Piksel, Inc., (the
"Company"), a global provider of digital television and media
solutions, announced that it has commenced legal action against
Invigor Group Limited (ASX: IVO) ("Invigor"), formerly known as Hyro
In June of 2012 Piksel's predecessor company, KIT digital, Inc.
acquired substantially all of the assets of Invigor in exchange for
$2 million cash and shares of KIT digital, Inc. valued at
approximately $15 million. The shares issued to Invigor as
consideration were subject to a "Top-Off" provision.
The lawsuit filed by Piksel accuses Invigor of making fraudulent,
negligent, and misleading representations regarding its customer
relationships, its business outlook, and its cash tax liabilities.
Piksel's suit seeks disallowance of Invigor's Top-Off claim, cash
damages, and recovery of Piksel's attorney's fees. The suit is an
amendment to litigation previously commenced in KIT digital, Inc.'s
reorganization case in the US Bankruptcy Court for the Southern
District of New York, where Invigor's Top-Off claim was previously
subordinated to the claims of general creditors.
"Invigor claimed it was selling a $25 million revenue business with
happy customers. Invigor also claimed it had no outstanding tax
obligations," said Allan Dunn, Chief Operating Officer of Piksel. "In
truth, Invigor was a business less than half that size and it was
losing customers at a very rapid rate. Invigor also had significant
undisclosed tax obligations in Australia and New Zealand."
This suit is a result of a review of all partnerships and agreements
by Piksel's new leadership team.
"As a listed company in Australia, Invigor continues to make public
statements that it expects to receive warrants to purchase 8% of the
outstanding shares of Piksel. We feel very strongly that when
presented at trial, the facts will demonstrate that Invigor made
significant fraudulent and negligent representations. As such,
pending resolution of the litigation, Piksel will not issue any
warrants to Invigor; on the contrary, Piksel is seeking to recover
damages from Invigor," said Fabrice Hamaide, Chief Financial Officer
of the Company.
A complete copy of the complaint is available on
We help the world's leading brands maximize their reach and return
Comprised of a global team of experts we call 'televisionaries',
Piksel has helped to design, build, and manage online video services
for major media companies like AT&T, BSkyB, Celcom, Mediaset, Sky
Deutschland and Televisa, as well as enterprise brands like Airbus,
Barnes & Noble, and Volkswagen.
Headquartered in New York City, Piksel (formerly KIT digital, Inc.)
offices can be found throughout Europe and the Americas, serving more
than 1,600 clients in over 50 countries.
Follow the company on Twitter at www.twitter.com/piksel
Piksel Media Contact:
VP Brand and Communications
T: +1 (347) 328 3545
TallGrass PR for Piksel:
T: +1 (201) 230-1196
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