SCI Holdings, Inc. Files Suit Against TransDimension, Inc. Alleging Fraud and Misrepresentation
SAN FRANCISCO (May 22, 2003) - Nossaman Guthner Knox & Elliott LLP yesterday filed suit in San Francisco federal court on behalf of clients SCI Holdings, Inc. and SCI Holdings LLC. The suit alleges that, in connection with a November 2001 stock-for-assets transaction, Irvine-based TransDimension, Inc. provided misleading financial data that concealed the company's failure to meet sales projections by wide margins.
The lawsuit seeks to prevent TransDimension's further use of key software used to connect devices using embedded processors to printers, cameras, speakers and other types of peripherals via Universal Serial Bus connections and to return all rights to the software to the plaintiffs, which previously operated under the name SoftConnex Technologies.
"The securities laws prohibit companies from playing fast-and-loose with the facts," explained Nossaman partner Carl Blumenstein. "TransDimension didn't get that message before this deal, so we hope the jury will deliver it now."
SCI Holdings, Inc., the developer of the software known as USBLink and used in new cellular phones, PDAs, MP3 players and digital still cameras, is asking the court to rescind the transaction, a remedy specified under California law for misrepresentation in securities sales, and for the return of the software.
The two SCI Holdings companies are also seeking an order that would halt TransDimension's further sales, development and marketing of the USBLink software; return the software along with any improvements to it; and require TransDimension to inform its customers that continued use of the USBLink software may constitute copyright infringement.
"The USBLink software is the market leader, and strong demand will continue, even if TransDimension is no longer the one making and selling that product," commented Robert Lowe, president of SCI Holdings, Inc.
Privately-owned TransDimension provides integrated circuits, IP cores, software stacks and development tools for interconnectivity between mobile devices and is one of the largest suppliers of USB technology for the embedded market. TransDimension acquired most of the assets of SCI Holdings, including the flagship software product USBLink which has broad platform support and a large library of class drivers supporting various devices for the embedded USB market.
The November 2001 software acquisition has enabled TransDimension to enhance its position among competitors, including Royal Philips Electronics and Cypress Semiconductor, as a one-stop shop offering a combined hardware-software solution for the embedded USB market. TransDimension's customers include cellular phone leaders Motorola and Qualcomm.
Nossaman Guthner Knox & Elliott LLP, a California-based law firm, specializes in complex civil litigation; infrastructure; land use, environmental, real property and water; healthcare; corporate transactions and public policy law. The firm represents a variety of public and private sector clients with interests ranging from aerospace and transportation to real estate development and water. Founded in 1959, Nossaman has more than 130 attorneys and lobbyists throughout offices in Los Angeles, San Francisco, Sacramento and Irvine.
