OpenGate Sues Thermo
Specifically, OpenGate alleges that Thermo concealed information related to the business’s safety, security, viability and operations, including the encroachment of a Mexican drug cartel onto the grounds of the Lab Workstation business’s Reynosa, Mexico, facility. The facility has a workforce of around 1,000 and generates 40%–50% of the business’s revenue.
Los Angeles, CA 5/10/13; Los Angeles, CA 5/31/13—OpenGate Capital, which last year acquired Thermo Fisher Scientific’s Laboratory Workstation business (see IBO 10/31/12), has filed suit against Thermo in the US District Court for the Central District of California. OpenGate alleges that Thermo “engaged in a scheme to induce the sale of the Hamilton Entities to Plaintiffs by, among other things, omitting to disclose facts material to the value, security and safe operation of the Hamilton Entities and their facilities, and by making affirmative misrepresentations to the same effect,” according to the complaint. The complaint also alleges false and negligent misrepresentation, breach of contract, and breach of the implied covenant of good faith and fair dealing. OpenGate is seeking general and special damages, including exemplary and punitive damages. According to the complaint, OpenGate paid $3 million in cash and a $10 million promissory note for the business, which manufactures lab furniture. Thermo has filed motions to dismiss the complaint for improper venue and failure to state a claim, arguing that the plaintiff failed to show material misrepresentation, scienter or reliance.

