Fleming and Katz Represent Client in $250M Lawsuit Over China Joint Venture
Law360 reported that Olshan client Crede CG III Ltd. filed a $250 million suit in New York federal court against 22nd Century, Inc., a genetic engineering company specializing in low-nicotine tobacco, for breach of contract and related claims. Private equity fund Crede CG is the largest investor and alleges that, among other things, 22nd Century wrongfully excluded Crede from a lucrative Chinese joint venture formed to sell 22nd Century’s specialized tobacco products to the China National Tobacco Company, the largest global tobacco seller. In exchange for connecting 22nd Century to the opportunity and investing $10 million to help the company pursue the deal, Crede was to receive 22nd Century stock warrants and a 25 percent interest in the Chinese joint venture. 22nd Century then deliberately sabotaged the joint venture by failing to make sensible efforts to secure long-term tobacco sales contracts with CNTC or any of its units, causing the joint venture to fail. Crede is represented by litigation attorneys Thomas J. Fleming and Brian A. Katz.