WoofersEtc and partners filed a lawsuit against Sundown Audio and its new owner Systematic Audio in a contract dispute, seeking punative damages.
WoofersEtc and partners allege they invested $260,000 in exchange for 25 percent ownership interest in Sundown Audio, with a right to receive 25 percent of the gross sales price if the company were sold.
The suit claims that when Sundown, owned by Jacob Fuller, was sold to Systematic Audio, led by Scottie Johnson, in 2022, the sale price was over $17.8 million. It claims Fuller concealed the true sale price and structured the deal to avoid paying WoofersEtc. It also claims WoofersEtc was cut off from its exclusive distribution rights to Sundown.
Systematic and Sundown dispute many of the claims, and Systematic has brought counterclaims alleging that WoofersEtc unlawfully used the Sundown trademark, breached a non-disclosure agreement, and tortiously interfered with Systematic’s relationships with its customers.
The case 23CVS001091-170 was filed in the State of North Carolina, Catawba County Superior Court here. It names Blue Building, LLC, Krubim 26 International, Inc dba WoofersEtc, David Soleymani, Joshua Soleymani and Daniel Soleymani as plaintiffs vs Sundown Audio, LLC, Jacob A Fuller, Scottie Johnson, Systematic Audio, LLC dba Sundown Audio, Jared Nugent and Second Wind Consultants as defendants.
