Tech firm settles case, secures funding
INCLINE VILLAGE — Tahoe-based Dot1web announced Tuesday that it had settled a 2-year-old lawsuit that alleged a conspiracy to destroy or control Dot1web subsidiary Lowestbids.com, and has secured new funding to pay outstanding claims against the company.
The settlement, signed last Friday, came a week after a jury trial in the matter was scheduled for October, and just before an extensive round of depositions were to have been taken. Terms of the settlement are confidential.
The complicated case consolidated three others, and had Lowestbids.com and Dot1web President and CEO Bob DeMaio as plaintiffs. The defendants were nine former Lowestbids.com employees, as well as the company’s former legal counsel.
The suit listed 12 counts, including racketeering and an allegation that most of the former employees and the law firm had conspired to destroy or take over Lowestbids.com. The defendants alleged that DeMaio appropriated intellectual property, knowingly issued bad checks and failed to pay for professional services.
In comments Tuesday, DeMaio said the new funding would pay back wages for more than 60 employees laid off last month and settle a lawsuit brought by Florida-based Green Solutions alleging Dot1web owes it more than $280,000 for compact disks it created. Other vendors allege they are owed money for labels and counter displays used with the CDs.
“I should have the funding in a day, day-and-a-half,” DeMaio said.
DeMaio said he had also found office space in Incline Village, and expected to sign a contract for it by Thursday.
Labor Commission spokeswoman Amanda Getzoff said 57 claims for wages unpaid by Dot1web were currently open and several others were being processed.
Getzoff said that at the request of Deputy Labor Commissioner Michael Tanchek no further claim counts would be provided because he didn’t want to try the employer in the press.
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