Vizio Says It ‘Properly Pleaded’ LeEco Fraud Claims in $2 Billion Merger ‘Gone Bad’
Vizio allegations LeEco committed fraud and deception in its failure to complete the proposed Vizio buy for lack of cash began with a $2 billion “merger transaction gone bad,” said Vizio in a memorandum opposing LeEco’s motion to dismiss (see…
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1711220018). Contrary to LeEco statements that Vizio offered no “particularized facts” supporting “existence of fraud,” as required under “generally applicable” legal rules, Vizio “properly pleaded its fraud claims against defendants with the required particularity,” said the memorandum (in Pacer) filed Monday in U.S. District Court in Santa Ana, California. Vizio “neither knew, nor did it have any means to discover, the falsity of the promises and material facts concealed” by LeEco, said the memo. Vizio “has pleaded facts which show that it has been damaged to the tune” of $60 million in unpaid termination fees that LeEco owes under the merger agreement, it said. Judge David Carter gave LeEco a Dec. 18 deadline to respond.