Benjamin Securities, Inc. (BSI) has filed a lawsuit against ConnectM Technology Solutions, Inc., its Vice-Chairman Bala Padmakumar, and Padmakumar's former company, Monterey Capital Acquisition Corp., for fraud and breach of contract. The lawsuit, filed on August 2, 2024, in the New York Supreme Court, seeks $525,000 in compensatory damages and $525,000 in punitive damages. BSI alleges it is owed $525,000 under a contract related to a business combination between ConnectM and Monterey Capital Acquisition Corp., which it claims has not been paid despite repeated demands. ConnectM's recent SEC filing does not mention the lawsuit, prompting BSI to notify the company's directors about the legal risks of not disclosing the litigation.
PENSACOLA, Fla., Aug. 17, 2024 /PRNewswire-PRWeb/ -- Benjamin Securities, Inc. ("BSI"), a broker-dealer of securities and member of the Financial Industry Regulatory Authority, today announced that it has commenced litigation against ConnectM Technology Solutions, Inc. (ConnectM) and the Vice-Chairman of its Board, Bala Padmakumar, as well as his former company, Monterey Capital Acquisition Corp. ("Monterey") of which he is the Chief Executive Officer.
The lawsuit, filed in the Supreme Court of the State of New York, County of New York, Index No. 157042/2024, on August 2, 2024, was commenced with the filing of a Summons With Notice stating that the nature of the action is for fraud and breach of contract for which compensatory damages of $525,000 and an additional $525,000 in punitive damages is sought.
On July 12, 2024, ConnectM issued a press release announcing that it completed a business combination with Monterey. According to a BSI spokesperson, BSI was instrumental in the success of that combination and pursuant to a written contract with both ConnectM and Monterey is entitled to be, but was not paid, the $525,000 sum claimed as money damages in the lawsuit. The spokesperson added: "BSI was constrained to file this lawsuit because of the defendants' utter lack of responsiveness to BSI's repeated demands for payment. They now will have to answer for their inaction and if they fail to appear in the lawsuit within the time period prescribed by law, BSI will move swiftly to seek a default judgment against them."
ConnectM's most recent 8K filing with the Securities and Exchange Commission ("SEC"), filed in August 2024, makes no mention of the lawsuit filed on August 2, 2024. In a letter sent by BSI's litigation counsel on August 9, 2024, to directors and officers of ConnectM and Monterey, including Bhaskar Panigraho, Girish Subramanya, Mahesh Choudhury, Keven Stateham (of ConnectM), Vivek Soni, Leela Gray, Daniel Davis, Kathy Cuocolo (of Monterey) as well as Mr. Padmakumar, BSI placed them on notice of the legal risks inherent in failing to file timely an 8K with the SEC disclosing the litigation.
Media Contact
Micheal Coyne, Benjamin Securities, Inc., 1 (516) 931-1090, [email protected], BenjaminSecurities.com
SOURCE Benjamin Securities, Inc.
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