New York - SpongeTech, a US manufacturer of polyurethane sponges for domestic use, has filed a law suit in the US District Court for the Southern District of New York against GetFugu Inc. citing a breach of contract, the company said 2 Oct.
SpongeTech alleges a breach of contract, breach of fiduciary duty, common law fraud, conversion, willful misconduct and unlawful appropriation of funds by GetFugu, a mobile-based web search and e-commerce technology company.
SpongeTech is seeking to recover an aggregate of $1.75 million which had been advanced to GetFugu in anticipation of the entry into a definitive investment agreement, the statement said.
In late September GetFugu advised SpongeTech that it "currently did not have the funds to repay the $1.75 million," and that it was seeking alternative financing sources to fund a reimbursement. (RD)