NEW YORK (Oct. 6, 2009)—SpongeTech Delivery Systems Inc., a New York-based manufacturer of polyurethane sponges, has filed a trademark infringement lawsuit against California-based Spongetech Inc., (STI) in the U.S. District Court for the Southern District of New York.
This suit follows the company's recent $1.75 million lawsuit against GetFugu Inc., a mobile-based Web search and e-commerce technology company.
The new lawsuit comes in the wake of recent press reports questioning the validity of six of SpongeTech's major customers as reported in the company's third quarter 2009 financial results. The complaint alleges STI knowingly and willfully appropriated its SpongeTech trademark and solicited business specifically in New York under the trademark.
In addition, the lawsuit alleges that STI's CEO made statements to the New York Post newspaper that “defamed the company, as a result, injuring the company's reputation and exposing the company to public hatred, contempt, ridicule, and/or degradation.”
SpongeTech is seeking permanent injunction barring STI from using its trademark, including such items as labels, signs, packaging, advertising and promotional material with the use of “SpongeTech,” as well as seeking any profits derived from STI's use of the trademark and damages for injury to SpongeTech's reputation, the statement said.
In a separate company statement, the New York-based company has also said it is appealing against a delisting notification from the Financial Industry Regulatory Authority (FINRA), which stated that the company is required to file its Annual Report on Form 10-K for the year ended May 31, 2009 with the Securities and Exchange Commission by no later than Oct. 16.
SpongeTech previously announced that the delay of its filing Form 10-K for FY '09 was because of the company's former auditor's difficulties with the Public Company Accounting Oversight Board.
As a result, the company's financial statement for the 2008 fiscal year is being re-audited and the financial statement for the 2009 fiscal year is being audited by SpongeTech's new auditing firm, Robison, Hill & Co.
If the Oct. 16 deadline is missed, the company's shares of common stock would not be eligible for continued quotation on the OTC Bulletin Board, the statement said.