NASHVILLE, Tenn., April 26, 2018 /PRNewswire/ -- Gibson Brands Inc. ("Gibson") today called a statement by Tronical GmbH that it may seek $50 million from Gibson in Germany for its alleged breach of an "exclusive research and development agreement with Tronical" a public relations stunt.
The company said that it believed the statement by Tronical and its CEO, Chris Adams is an attempt to hide the fact that Tronical and Mr. Adams were sued last year by Gibson, alleging that they currently owe Gibson several millions of dollars in damages. The lawsuit, which details the allegations, is case 3:17-cv-01542, and is currently pending in U.S. District Court for Middle District of Tennessee.
Over the course of several years, Gibson provided Tronical and CEO Chris Adams with more than $13.5 million dollars in funding to create and develop auto tuners exclusively for Gibson. Despite the millions that Gibson previously paid Tronical and Mr. Adams, they have been unwilling or unable to account for the monies provided by Gibson, have failed to fulfill agreed-upon orders for products, and have failed to return money that was prepayment for goods never delivered.
In December of last year, Gibson sued Mr. Adams and his companies in the United States for fraud, breach of contract, and unfair and deceptive business practices. Instead of supplying the product or returning Gibson's money, Tronical retaliated by filing its own lawsuit in Germany and is attempting to avoid appearing in the United States to address the merits of Gibson's lawsuit. Now, in its press release, Tronical claims damages that are unsubstantiated by any court filings in either Germany or the United States. Gibson is confident it will ultimately prevail in its lawsuit against Tronical and Mr. Adams.
Gibson believes that Tronical's claims are without merit and intends to vigorously defend against such claims as well as continue to pursue the Company's significant claims against the Tronical entities and Mr. Adams in the U.S. litigation.
Gibson Brands, one the fastest-growing companies in the music and sound industries, was founded in 1894 and is headquartered in Nashville, TN. Gibson Brands is a global leader in musical instruments, and consumer and professional audio, and is dedicated to bringing the finest experiences by offering exceptional products with world-recognized brands. Gibson has a portfolio of over 100 well-recognized brand names starting with the number one guitar brand, Gibson. Other brands include: Epiphone, Dobro, Valley Arts, Kramer, Steinberger, Tobias, Slingerland, Maestro, Baldwin, Hamilton, Chickering and Wurlitzer. Audio brands include: KRK Systems, TASCAM, Cerwin-Vega, Stanton, Integra, TEAC, TASCAM Professional Software, and Esoteric. All Gibson Brands are dedicated to innovation, prestige and improving the quality of life of our customers.
SOURCE Gibson Brands Inc.