Hoffend & Sons, based in Victor, NY, has filed suit against Brookings, SD-based Daktronics, seeking damages for shareholders for at least $12 million.
Hoffend claims Daktronics has breached a 2006 contract to acquire Hoffend & Sons Inc. by failing to comply with the terms of the acquisition. Daktronics Inc. purchased the operating assets of Hoffend & Sons in October 2006. Under the terms of the purchase agreement, Daktronics was to provide payments to Hoffend shareholders contingent on financial milestones for the Vortek® system, as well as regular financial reporting. According to the legal complaint, Hoffend alleges that Daktronics has not made any contingent payments or provided any financial reports as required.
The lawsuit, filed in New York State Supreme Court in April, names as defendants both Daktronics Inc. and its Daktronics Hoist Inc. subsidiary.
Both companies declined to comment today.