Sale of well-known surfboard company doesn't go as planned.
Breach of contract against Greco Acquisition, LLC: $3,076,290 plus 6% interest.
False promise against Randy Cecola and Trovare Capital Group, LLC: $3.076,290 plus 6% interest.
Fraud in the inducement against Randy Cecola and Trovare Capital Group, LLC: $3.076,290 plus 6% interest and $250,000 in lost profits.
Intentional interference with contractual relations against Alex Cecola and Gold Coast Surfboards, LLC: $660,000.
Plaintiffs waived punitive damages.
Boesch Law Group by Philip W. Boesch, Jr. and Annie Ksadzhikyan, Santa Monica.
Walters Law Group by Christopher Walters, San Diego.
Victoria Wilkerson, MBA, CPA, ABC, CFE, economics, Los Angeles.
Over nearly a decade, plaintiff Todd Greco, founder of Greco Surfboards, LLC, transformed what began as a small operation shaping and selling foam surfboards into a multi-million-dollar enterprise manufacturing and selling surfboards, stand up paddle boards, accessories and apparel online.
On September 30, 2015, Todd Greco entered into an Asset Purchase Agreement (sale of business) with defendants Greco Acquisition, LLC, Randy Cecola, and Trovare Capital Group. Despite defendants’ express agreement to pay a purchase price of $3,075,000, they failed to do so. Shortly after entering into the Asset Purchase Agreement, defendant Alex Cecola (Randy Cecola's son) and Sophia Cecola (Randy Cecola's wife), formed Gold Coast Surfboards LLC, a virtually identical surfboard company.
Pursuant to a writ of attachment, the Greco Surf inventory was seized by the Los Angeles Sheriff's Department in October 2016.
Breach of contract, false promise, fraud in the inducement, intentional interference with contractual relations.
That at the same time defendants were purportedly running the Greco Surf business, they were diverting potential customers and sales from the Greco business to Gold Coast, and liquidating the Greco assets by funneling funds into the Gold Coast bank accounts, while incurring substantial debts on behalf of the Greco Surf business.
Defendants denied plaintiff's claims of fraud and breach of contract.
Defendants/cross-complainants filed a cross-complaint, alleging that plaintiffs/cross-defendants misrepresented the success and stability of the Greco Surfboards business to defendants/cross-complainants, and that Greco Surfboards made misrepresentations to customers and vendors.