Oak Investment Partners and Gobi Partners said a New York state judge granted their requests to attach $60 million in assets they claim they’re owed by VisionChina Media Inc. (VISN:US) in a breach-of-contract lawsuit.
The venture-capital firms say VisionChina, an operator of a mobile television advertising network, made baseless fraud allegations against them to avoid paying for its 2010 acquisition of Digital Media Group Ltd., a company in which they owned shares, according to court documents.
“It is undisputed that VisionChina failed to remit the deferred payments,” Justice Charles Ramos wrote in a June 15 ruling in Manhattan, Oak and Gobi said in a statement today.
Colin Wang, a spokesman for VisionChina, didn’t immediately respond to an e-mailed message seeking comment on the ruling and didn’t answer a telephone call after business hours in Shenzhen, China.
Ramos refused to rule completely for Oak and Gobi in the 16-page decision, finding that VisonChina may have valid defenses to the breach-of-contract claims.
“At the very least, these assertions raise triable issues of fact sufficient to defeat” Oak’s and Gobi’s requests for partial summary judgment, the judge said.
The case is Shareholder Representative Services v. VisionChina Media, 650526-2011, New York State Supreme Court, New York County (Manhattan).
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