HACKENSACK, N.J.-GoAmerica Inc. said it is suing Flash Creative Management Inc. for breach of contract, fraud and other issues.
The company said the suit arises from information about Flash the company discovered in connection with a lawsuit filed against GoAmerica by Eagle Truck Lines in February.
“The Flash defendants have recently issued a press release stating that they have counterclaimed against GoAmerica and three of its executive officers,” GoAmerica said in a statement. “GoAmerica is moving to have the counterclaim charges dismissed as without merit. GoAmerica intends to vigorously pursue its claims against Eagle and the Flash defendants and to defend against the counterclaims asserted.”
Separately, GoAmerica reported revenues for the third quarter of $9.1 million, down from the company’s $9.6 million in the second quarter.
“During the third quarter we made great progress at improving both our financial performance and strategic position,” said Aaron Dobrinsky, the company’s chairman and chief executive officer. “We achieved a record level of gross profitability, reduced total cash burn, expanded our relationship with IBM and signed a new, comprehensive strategic alliance with EarthLink. Through this alliance and other cost saving initiatives, we are making substantial progress at further reducing spending and expect to report continued and significant declines in cash burn as we enter 2003.”
