Monday, June 30, 2008

Charles & Colvard, K&G Creations in Dual Lawsuit Battle

K&G Creations and its former moissanite supplier Charles & Colvard have filed lawsuits against one another. Charles & Colvard announced June 16 that it had filed suit against K&G, seeking to recover $2.8 million, plus interest, “for moissanite jewels delivered and sold” to K&G.

A major customer of Charles & Colvard since 1998, K&G’s manufacturing agreement with the moissanite creator was terminated December 31, 2007.

K&G Creations on June 26 announced that it was filing a counter-suit against Charles & Colvard, seeking $50 million “for damages resulting from Charles & Colvard’s breach of its contract with K&G and fraud,” and alleging that, over the last four years, “Charles & Colvard engaged in practices that ruined K&G’s reputation and ultimately forced K&G out of the moissanite business.”

The lawsuit filed by K&G Creations accuses Charles & Colvard of “tortuous interference, unfair competition, breach of contract and fraud,” according to a release, as well as negligence on the part of Bob Thomas, who it claims was aware of and failed to correct “damaging actions on the part of Dennis Reed (President), Barbara Mooty (Director of Marketing) and others.”

Neil Koppel, president of K&G Creations, claimed that the company has proof that, “as far back as 2001, Charles & Colvard conspired to defraud K&G Creations by not honoring the pricing of the moissanite jewelry that was contractually agreed to.”

K&G Creations also stated that it is looking for other shareholders to come forward to join in a class action lawsuit.

1 comment:

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