Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Oak Investment, Gobi Partners Seek $60 Million From VisionChina

Nov. 22 (Bloomberg) -- 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).

To contact the reporter on this story: Karen Gullo in San Francisco at kgullo@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.