(Houston, TX) Robert J. Kruckemeyer and Michael T. Kruckemeyer of The Kruckemeyer Law Firm, joined by Randall O. Sorrels of Abraham, Watkins, Nichols, Agosto, Aziz & Stogner obtained a judgment on behalf of their clients, Raed Abdallah and Ali Abdallah, against Control & Applications LLC f/k/a vMonitor LLC, Rashed Saif Jaber al Suwaidi, Juan Carlos Marques Montejano, Hussan Suheil, and Horizon Energy, LLC in the amount of $7,206,349.20 actual damages, $1,667,332.02 prejudgment interest, and punitive damages totaling $2,882,539.68.
The judgment was entered by Judge Jaclanel McFarland, presiding judge of the 133rd Judicial District Court in Harris County, Texas. The Court found in favor of the plaintiffs and against all defendants on the plaintiffs’ claim for fraud and in favor of the plaintiffs and against the defendants Rashed Saif Jaber al Suwaidi and Hussan Suheil on the plaintiffs’ claim for breach of fiduciary duty.
The Plaintiffs are brothers who each owned an 8.33% interest in vMonitor, LLC, an Abu Dhabi limited liability company. The Middle East Defendants convinced the Plaintiffs that vMonitor was worth only $13,000,000 by representing to them that a third-party had offered to purchase their interests at that valuation. Unbeknownst to the Plaintiffs the Defendants had previously told a possible investor that they valued the company at $60,000.000. The alleged third-party purchaser then bowed out and the majority shareholder purchased the Plaintiffs’ interest at the $13,000,000 valuation. Soon thereafter the entire company was sold for nearly $60,000,000 to Rockwell Automation.
Robert Kruckemeyer noted, “We were fortunate to be able to obtain the testimony from the straw man purchaser who testified that he never made an offer to purchase an interest in the company at any price, much less $13,000,000. It took some doing as he is in federal detention in Miami having pleaded guilty to federal foreign bribery and fraud charges.” Kruckemeyer added: “More important was Randy’s masterful cross-examination of the defendants’ main witnesses. He skillfully showed that their various explanations for what occurred were not credible. The Court properly held the Defendants accountable.”
The Defendants have indicated they will appeal, but Kruckemeyer believes the judgment will be upheld and the appeal rejected. “The trial stretched over a two-week period and all sides were able to present their cases. This nearly $12 million verdict should send a message that this conduct will not be tolerated.”