Tire recycler Castle Tire Disposal LLC is suing the company that purchased it over claims that its purchaser, Liberty Tire Services of Ohio LLC, breached the parties’ earnout agreement.
Castle filed its complaint against Liberty in the Delaware Chancery Court on Tuesday.
Castle’s right to an earnout was allegedly triggered on Dec. 18, when Liberty experienced a “change of control” event involving Liberty’s owner, Energy Capital Partners, selling Liberty to I Squared Capital. This purchase required Liberty to pay an earnout it calculated within 10 days, Castle said in its complaint.
Based on marketing materials Liberty sent to Castle, Castle ...
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