NEW ORLEANS — A shareholder is suing a group of buyers, alleging breach of their shareholder agreement.
Session Fixture Company Inc. filed a lawsuit June 9 in U.S. District Court for the Eastern District of Louisiana against Pride Marketing and Procurement Inc., Admiral Insurance Company and XYZ Insurance Company, alleging negligence, unlawful conversion and breach of fiduciary duty.
According to the complaint, Session Fixture has sustained monetary damages of more than $1.5 million, the total amount of rebates it earned from the purchases made during the year 2015 and in 2016 to date. The plaintiff alleges the defendants failed or refused to pay the plaintiff the rebates earned during 2015 and 2016, wrongfully pledged the plaintiff's rebates as collateral for guaranty to Pride's affiliate, Foodservicewarehouse.com LLC's debt, failed to segregate the plaintiff's rebates from other shareholders' rebates, and failed to properly investigate FSW's precarious financial status at the time it pledged rebates.
Session Fixture seeks a trial by jury, all damages and such other relief in law as it is entitled to receive. It is represented by attorneys John Y. Pearce, Stephen L. Williamson and R. Ethan Zubic of Montgomery Barnett LLP in New Orleans.
U.S. District Court for the Eastern District of Louisiana Case number 2:16-cv-09373