Faruki Team Obtains Defense Verdict, Wins Counterclaim Judgment and Attorney's Fee Award


Jeff Ireland, Jason Palmer, and Melissa Schuett successfully defended Qingdao Sunsong Co., Ltd. and Sunsong Holdings, Inc. by obtaining a defense verdict on November 20, 2019.  Harris, et al. v. Sunsong Holdings, Inc., et al., Case No. 2016 CV 05530.  Faruki's client was awarded a judgment of more than $1.7 million on its counterclaims, as well as its attorney's fees, expenses, and costs of litigation.  Plaintiffs originally brought claims for breach of contract, conversion, tortious interference with contract, breach of fiduciary duty, and fraudulent inducement, all stemming from a 2015 acquisition of a Dayton manufacturer.  The Defendants represented by Faruki filed counterclaims for fraud and breach of contract, arguing that material information was concealed and misrepresented in due diligence.  The Court agreed with Sunsong, finding that the Plaintiffs fraudulently misrepresented financial information and the condition of the Company, causing Sunsong to pay more for the business than it otherwise would have.  The Court held that Sunsong did not have to pay the remaining amounts owed for purchasing the business.  In addition, the Court concluded that Sunsong had already overpaid for the business by $1.7 million, and awarded Sunsong a judgment in that amount.  Finally, the Court held that Sunsong was entitled to recover its attorney's fees, expenses, and costs of litigation.

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