NEW YORK, June 7 /PRNewswire/ -- 600 Management today announced it has amended its lawsuit in New York (Supreme Court, State of NY, County of NY, case #602353/09) to include the allegation that former CEO and President of SKI & Company, Chris Lencheski, and his wife, Sharon Lencheski, a former Director of the company, fraudulently induced 600 Management to acquire SKI & Company by significantly misrepresenting the financial position of the business.
The amended complaint continues previously alleged claims that Chris Lencheski and Sharon Lencheski breached contractual non-compete obligations, by purchasing the Quad City Mallards of the International Hockey League (IHL), which recently announced a merger with the Central Hockey League (CHL). The complaint also asserts that Lencheski breached his fiduciary duties as well as contractual restrictions on the use of confidential materials. As alleged in the complaint, Lencheski engaged in the negotiations and completed the acquisition of the Mallards in secret, using proprietary information, without the knowledge or consent of the majority owners of 600 Management.
The newly added fraud claim asserts that during negotiations to acquire SKI & Company, Lencheski produced financial statements and projections which double-counted a large percentage of the company's reported income, falsely inflating the company's value.
600 Management is seeking damages in excess of $10 million, as well as a finding that Lencheski's wrongful ownership of the Mallards should be held as a constructive trust for the benefit of 600 Management, and looks forward to the favorable resolution of this matter in the courts.
SOURCE 600 Management LLC