Vizio sued LeEco in the wake of the Chinese technology conglomerate’s failed attempt at a US$2 billion acquisition of the US television maker.
Vizio seeks US$60 million in damages, claiming LeEco paid only US$40 million of a US$100 million termination fee and didn’t live up to its end of a joint-venture agreement the companies struck after the failed merger.
After the merger fell through in April, the companies agreed to set up a venture to sell Vizio’s products in China through LeEco’s distribution, according to the Irvine, California-based company’s complaint filed Tuesday in nearby Santa Ana federal court. Vizio renounced immediate payment of the termination fee on the condition it would receive US$40 million initially, plus US$10 million at a later point, and Beijing-based LeEco would invest US$50 million in their joint venture, according to the complaint.
When Vizio tried to work out further terms of the framework agreement, it was met with “radio silence,” the company said. LeEco used the proposed joint venture as a subterfuge to escape the US$100 million liability, according to Vizio.
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