Restorsea files lawsuit against Aqua Bio Technology
According to Restorsea, the contract it signed with ABT granted the company worldwide rights in ‘substantially all channels’, to use the Aquabeautine XL marine-derived ingredient in its skin care formulations.
Restorsea claims that it paid a premium for a 2012 exclusivity agreement which would provide Aquabeautine XL and a number of other products only for the company’s use.
Lawsuit demands ABT comply with the exclusivity agreement
The lawsuit states that ABT violated this agreement, and requests that the New York court, where the legal action has been filed, orders ABT to comply with the exclusivity promises that were made according to the contract.
Excerpts from the lawsuit state that ABT “has been marketing and selling prohibited products to various third parties, including Restorsea’s competitors.”
Likewise, the lawsuit also states that “Restorsea commenced this action in order to hold ABT to its promises under the Exclusivity Agreement and to recover the millions of dollars in damages it has suffered as a result of ABT’s breaches to date.”
ABT defends its position…
ABT says it has obtained access to a copy of the lawsuit, which was filed at the Southern District of New York District Court on February 7th, but says it has not been formally served with the Complaint, which the company says is required by US law.
According to ABT, the lawsuit is filing for compensatory damages of $5.9m, as well as requesting that ABT complies with the contractual obligations in the exclusivity agreement.
In an official response to the lawsuit, the company stated: "ABT believes the Complaint is procedurally and substantively deficient and it intends to vigorously defend against Restorsea's allegations".
Restorsea claims it has attempted to make dialogue
Restorsea claims that it has tried to communicate with ABT about the lawsuit for some time, but this has not worked.
“We have tried to engage in dialogue with ABT during the past several months to resolve this matter, but our attempts have not been successful,” said Patti Pao, CEO of Restorsea, which she founded in 2012.
“We are disappointed ABT has not upheld the terms of our contract, leaving us with no other recourse but to file this lawsuit to ensure that they honor the rights for which we have already paid.”
