Venture capital firms Oak Investment Partners and Gobi Partners asked a New York state judge to award them $60 million they say they’re owed by VisionChina Media Inc. in a breach of contract lawsuit.
The firms say VisionChina, an operator of a digital mobile television advertising network, made baseless fraud allegations against them to avoid paying for its 2010 acquisition of Digital Media Group Ltd., a company they owned shares in, according to documents filed in state court in Manhattan yesterday.
The fraud claims were dismissed and Judge Charles Ramos granted the firms’ request to attach $30 million of the Shenzhen, China-based company’s U.S. assets. A $30 million payment for the $160 million merger was due in November 2010, according to court records.
Another $30 million was due Nov. 16, according to the filings. Oak Investment Partners and Gobi Partners asked the judge to rule that VisionChina breached the merger agreement and to enter a $60 million judgment against the company.
Colin Wang, a spokeswoman for VisionChina, declined to comment on the latest filings today.
The company’s board believes that the venture firms’ claims are without merit and is appealing the judge’s rulings, VisionChina said in a Nov. 16 statement.
The case is Shareholder Representative Services v. VisionChina Media, 650526-2011, New York State Supreme Court (Manhattan).