Nukote Files Suit Against Office Depot
- By Tricia Judge
- Sep 08, 2009
Nukote International, Inc. has filed a $217-million lawsuit against Office Depot “for a series of egregious fraudulent misrepresentations and breaches of contract” in the United States Bankruptcy Court for the Middle District of Tennessee Nashville Division. The lawsuit alleges a host of unsavory activity by Office Depot that includes SEC reporting violations and underpayment of sums due to Nukote so draconian that it “brought the Debtor (Nukote) to its knees.” The complaint lays the blame for Nukote’s June Chapter-11 filing on Office Depot. The complaint also alleges that Office Depot’s activities were partially motivated by its own financial problems.
In May, Nukote and Office Depot ended their 20-year relationship as vendor and retailer, in which Nukote supplied Office Depot with as much as $85 million in product annually. The complaint states that the parties had a series of contracts that would not terminate until July 2010. In addition, it states that representatives at Office Depot, as senior as its President Chuck Rubin, gave Nukote assurances that their relationship was secure and that Office Depot was financially sound.
Nukote also alleges it was improperly forced into a bidding war for Office Depot’s business, which it ultimately moved its business to another company, further exacerbating Nukote’s financial situation. The action was brought against Office Depot within the Nukote bankruptcy in an adversary proceeding. Nukote’s creditors therefore stand to benefit from a positive outcome for the debtor in the case.
About the Author
Tricia Judge is the executive director of the International Imaging Technology Council, a not-for-profit trade association serving imaging supplies remanufacturers and dealers. Judge was also the executive editor of Recharger Magazine for five years. Judge managed a private law practice that specialized in small business issues for 11 years. Judge’s work has been published in various industry publications, and she has won critical acclaim for her writing and industry advocacy. She is a regular speaker on industry issues at meetings around the world.