Mobix Labs stock falls after filing lawsuit against investors

Investing.com -- Mobix Labs, Inc. (NASDAQ:MOBX) stock tumbled 13.4% on Monday after the semiconductor and defense-technology company announced it had filed a lawsuit against several investors for allegedly failing to deliver promised funding.

The company filed a Verified Complaint in the Delaware Court of Chancery against Tik Yang Tse (also known as Denis Tse), ACE Equity Partners International, Asia-IO Equity Partners International, and ACE SO4 Holdings Limited. Mobix alleges the defendants engaged in fraudulent conduct, intentional misrepresentations, and breach of contract.

According to the complaint, ACE failed to deliver $30 million in financing it was contractually obligated to fund in connection with Mobix’s 2023 business combination. The lawsuit specifically accuses Denis Tse of personally participating in negotiations and "knowingly, intentionally and falsely" inducing Mobix to enter into the Subscription Agreement.

Mobix claims Tse repeatedly misrepresented that ACE and its affiliates had the financial capacity to honor the investment. The complaint further alleges the defendants used Mobix’s materials and reputation for their own benefit while creating a false impression of affiliation and support.

The fast-growing semiconductor company is seeking over $250 million in damages plus punitive damages, along with specific performance requiring ACE to fund the $30 million equity investment it allegedly agreed to deliver.

The defendants have not yet responded to the allegations, which remain to be adjudicated by the Court.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.