Amends Lawsuit Against Westerdal — Thought Convergence

Amended complaint includes fresh parties and allegations.

Thought Convergence (TCI) has amended its complaint against Jay Westerdal and other parties related to TCI’s buyout of Name Intelligence, LLC (NIL).

The amended complaint names Name Intelligence, Inc., a holding firm owned in part by Westerdal, and DOTMOVIE, Westerdal’s firm that plans to introduce a .movie top level domain name.

As stated by the amended complaint, TCI has now paid the full amount due for its second payment for the buyout. TCI paid $4 million on May 8, 2009, and transferred $1.5 million into an escrow account pending outcome of the lawsuit. The complaint states:

TCI continued to investigate the amounts of its set-off claims between May 8, 2009 and May 26, 2009. That investigation revealed that much of the misconduct, while egregious and startling, was difficult to monetize and continues to be a moving and growing target. While the amount of set-off is likely to be well in excess of $1.5 million, a final determination will required additional time and retention of consultants and experts in order to fix an amount to its substantial claims.

Therefore, TCI released the $1.5 million from the escrow account on May 26, 2009, and decided it will pursue set-offs and damages in the litigation.

The complaint also adds fresh allegations that Westerdal breached his fiduciary duty to the firm:

J. Westerdal breached his fiduciary duties to TCI and NIL by meeting with NIL Businesses’ employees and falsely informing them, among other things, that (i) TCI would be unable to make payroll; (ii) TCI was insolvent; and (iii) J. Westerdal would get his firm back.

Furthermore, TCI alleges that Westerdal “breached his fiduciary duties by disclosing TCI and NIL confidential information to the public.”

A summons dated May 27 gives the defendants twenty days to answer the complaint.

You may view the May 27 amended complaint here (pdf).