Axus Stationery Shanghai Ltd Lawsuit Motion to Dismiss Fails

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Axus Stationery and co-founder Andre Viegas's motion to dismiss lawsuit denied by U.S. Court

Products and Ventures International (“PVI”) has completed another step in its lawsuit against Axus Stationery (Shanghai) Ltd., one of the world’s largest suppliers of pencils, as well as its owners and subsidiaries/related companies, as Judge denies defendants motion to dismiss. PVI has brought trade secret misappropriation claims against Axus Stationery over its wrongful use of PVI’s pencil-making technology in the United States District Court for the Northern District of California, as well as claims for breach of contract and intentional interference with contract. This lawsuit is but one part of PVI’s plans to pursue all available relief in U.S. and international venues against Axus Stationery (Shanghai) Ltd.

The District Court in denying defendants Andre Viegas and Roberta Trading Corporation’s motion to dismiss, found that it had personal jurisdiction over the defendants and that PVI had stated claims for relief against them.

Andre Viegas is the co-founder of Axus Stationery (Shanghai) Ltd. and is one of the world’s leading business executives in the pencil manufacturing industry. The Court permitted PVI to continue with its claims that Mr. Viegas purposefully disrupted PVI’s supply contracts with its customers, including Sanford Colombia, Sanford USA, Staedtler Germany and Koh I Noor Czech Republic, by personally soliciting PVI’s customers and also by causing Axus Stationery (Shanghai) Ltd. and its subsidiaries/related companies to deliberately undersupply PVI with pencil slats in violation of a Distribution Agreement that PVI had with Axus Stationary (Shanghai) Ltd. and its related companies. PVI is seeking damages in excess of $20 million.

Roberta Trading Corporation was formerly known as Marco Trading Corporation, is one of the original signatories to the Distribution Agreement, and is also co-owned by Mr. Viegas and his partner Mr. Peifeng Xu. The Court permitted PVI to continue with its claims that Roberta Trading Corporation breached the contract because it caused Axus Stationery (Shanghai) Ltd. and its subsidiaries/related companies to deliberately undersupply PVI with pencil slats in violation of the Distribution Agreement.

The case is Products and Ventures Int’l v. Axus Stationery (Shanghai) Ltd., et al., No. 4:16-CV-00669-YGR (N.D. Cal.). Any inquiries regarding this matter should be directed to Randolph Gaw at Gaw | Poe LLP, rgaw(at)gawpoe(dot)com and 415-766-7451.

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