Network development and information infrastructure professional services provider Tilson Technology Management has filed a breach of contract lawsuit against networking firm Gigapower in which it seeks more than $200 million it claims to be owed for building networks in Nevada and Arizona.
Tilson says that Gigapower breached a contract between the two companies and owes Tilson for termination charges, underpayments, and missed payments. The suit alleges that Gigapower delayed and withheld payments in order to force Tilson to renegotiate and accept new terms, including lower payments and a reduced scope of work.
That, Tilson claims, caused more than $100 million in “negative cash flow.”
The suit claims that earlier this year Gigapower terminated the agreement, which forced Tilson into Chapter 11 bankruptcy.
“We entered this contract in good faith and followed through on our obligations at every step of the way, and we expect our clients to do the same,” Tilson CEO Darrell Ingram said in a press release.
“We are simply seeking for Gigapower to comply with its contract and pay the money we were promised for the services we delivered. This lawsuit provides a path for Tilson’s creditors, including the many vendors who worked on this project, to be paid. We will not rest until Gigapower fulfills its obligations.”
“Gigapower did not breach our contract with Tilson,” Gigapower Vice President of Service and Technology Delivery Liane Rulifson told Telecompetitor. “It is unfortunate that we have arrived at this point and will vigorously defend ourselves in court. Until that process is complete, we will refrain from saying anything more.”
Gigapower is a joint venture between AT&T and investment firm BlackRock.
