Lezak v. Expand Cellular, Inc. et al.

Rick rings bell against
cell-phone app developer

Problem: Rick’s client purchased the assets of a bankrupt company for $66,000. The company had been developing cellular telephone business applications before it ran out of funding. The client received a closetful of old equipment and stale software, and not much more. The founders of the bankrupt company were continuing in the same development business under a new name, Expand Cellular, with a mix of new and old investors.

Solution: Our client sued the new business and its founders for misappropriation of the bankrupt company’s trade secrets and other assets. Rick first obtained a preliminary injunction stopping the development and marketing of Expand Cellular’s product. He next won an $8.75 million jury verdict for damages to the client’s asset purchase, and a $415,000 attorney fee award from the court. But this wasn’t the end of the case.

Problem: The major defendants in the Expand Cellular case filed for bankruptcy.

Solution: Our client recovered payments for a significant amount of the jury award after Rick sued a number of investors in and attorneys for Expand Cellular.