Failed merger results in lawsuit

By Matt Russell | May 23, 2014

HUNTINGTON -- An alternative fuel company is facing a lawsuit after a merger deal fell through.

Clyde J. Smith filed a lawsuit May 12 in Cabell Circuit Court against 21st Century Natural Fuels LLC, Alternative Fuel Solutions of Pennsylvania LLC, James J. O'Donnell, Dennis J. O'Donnell and Deborah A. Vasenda.

According to the complaint, the plaintiff is the owner of West Virginia CNG Inc., which installs conversion devices onto vehicles that allow them to run on natural gas. In October, the defendant company 21st Century Natural Fuels and owners contacted the plaintiff with the intention to purchase WV CNG and split future profits 50-50 with Smith.

The suit states Smith purchased a 2.5 percent stake in 21st Century at $250,000 as part of the purchase agreement.

Following the purchase of WV CNG and a transfer of the money on Nov. 1, the defendants refused to provide proof of ownership to Smith and refused to disclose finances of the newly formed joint company.

The suit states the failure to disclose this information meant the deal was never formally closed, so on Feb. 17, Smith rescinded the purchase agreement. He is now suing to recover the money he transferred to the defendants as part of the now voided purchase agreement.

Smith is seeking a repayment of the $250,000, plus damages to be determined by the court.

He is being represented in the case by attorneys Keith J. George and W. Bradley Sorrels of Robinson & McElwee PLLC and P. Rodney Jackson of the law office of P. Randy Jackson.

Cabell Circuit Court Case No. 14-C-369.

More News

The Record Network