EPIR says this suit is in response to Sunovia's multiple alleged breaches of the parties' research, development and supply (RDS) agreement. Earlier in July, having delivered on all of its obligations under the agreement, EPIR terminated the RDS agreement because of Sunovia's various breaches, among which included Sunovia's failure to make payments required under the agreement, according to EPIR.
Sunovia has filed a response to EPIR's complaint and has asserted, among other things, fraud, misappropriation of funds and nonperformance. The company's counterclaims include allegations against EPIR, EPIR's founder and CEO – Sivalingam Sivananthan – and Sivananthan Laboratories Inc.
The counterclaims allege that EPIR diverted funds paid by Sunovia and then attempted to conceal the actions when Sunovia requested information to which it was entitled, fraudulently concealed from Sunovia patent applications claiming technology developed under the agreement, and attempted to destroy or appropriate Sunovia's investment in EPIR and the joint development effort, Sunovia says.