CHICAGO, Dec. 3, 2013 /PRNewswire/ -- A tool company's fraud claims in its lawsuit against Sears Holding Corp. may proceed, a Chicago federal district judge has ruled by denying Sears' motion to dismiss the lawsuit. Illinois-based LoggerHead Tools, LLC contends Sears broke numerous state and federal laws when it abruptly stopped purchasing LoggerHead's award-winning Bionic Wrench®, a patented tool made in the United States.
According to the lawsuit, Sears stopped purchasing the Bionic Wrench so it could sell a knockoff version made in China and sold under a Sears brand. LoggerHead is seeking an injunction against Sears in addition to monetary damages, including punitive damages for fraud.
Sears filed a motion to dismiss the fraud claims in June, but Judge John W. Darrah of the U.S. District Court for the Northern District of Illinois recently denied that motion. The judge determined that LoggerHead's amended complaint filed in May alleged facts sufficient for the fraud claims to proceed.
The judge concluded that LoggerHead's allegations, if proven at trial, could establish that "Sears's actions were part of an ongoing scheme to defraud" the toolmaker. The judge's ruling went on to say that based on the allegations in LoggerHead's amended complaint, it is plausible that Sears continued negotiations with LoggerHead, "all while secretly developing its own wrench, in order to prevent LoggerHead from being able to sell its Bionic Wrench to other competitors in time for the holiday sales."
LoggerHead's lawsuit now will proceed with 11 claims against Sears, including claims for patent infringement, trademark infringement, unfair competition and fraud.
"We are very pleased with the recent ruling, and we look forward to proceeding with our case against Sears," said Dan Brown Sr., founder and President of LoggerHead Tools, and inventor of the Bionic Wrench.
About LoggerHead Tools
LoggerHead Tools LLC designs, develops and commercializes new-to-the-world tools manufactured in the United States. The company's mission is to create problem-solving innovations that provide enhanced value to its customers. To learn more about these tools, including the award-winning Bionic Wrench, visit www.loggerheadtools.com.
For more information on LoggerHead Tools' lawsuit, please contact Barry Pound at 800-559-4534 or email@example.com.
SOURCE LoggerHead Tools, LLC