WASHINGTON-ATS Mobile Communications, a Pittsburgh dispatch radio operator, has alleged in state court that Com-Net Critical Communications Inc.-the buyer of L.M. Ericsson’s private radio business-broke a 15-year, $6 million contract to lease 800 MHz channels from it.
Among the most serious claims in the suit, filed in the Court of Common Pleas of Allegheny County, Pa., on May 19, is that Com-Net is grossly undercapitalized and is a front for the operations of its parent company and sole shareholder, Anderson Group.
“We’re very unhappy that it has come to this,” said Jerry Freund, general manager of ATS. “We thought we had a solid deal with a substantial and reputable company. As it turned out, Com-Net stopped paying six months after the contract started, and now is trying to avoid responsibility by claiming it has no assets. That’s not how Com-Net was represented to us.”
ATS Mobile claims Anderson Group made several payments to it before payments ceased altogether.
Earlier this year, Com-Net completed its acquisition of Ericsson’s private radio assets, though Ericsson still retains a minority interest in the company.
The principals of Com-Net are co-founders Steve Savor and Stephen Frobouck, both Pittsburgh attorneys.
“All of the allegations are meritless and are not accurate, and will be dismissed upon the filing of preliminary objections,” said Dave Fasulo, a lawyer for Com-Net. Com-Net will make the filing this week.
