Workstream Inc. is embroiled in a lawsuit with Florida's Empagio Acquisition LLC and its subsidiary SMB Capital Corp. following the termination of a proposed deal between the companies.
Empagio and SMB filed a lawsuit in the Delaware District Court this week against the Maitland, Fla.-based company which was formerly headquartered in Ottawa, citing breach of contract as the reason for the action.
Earlier in the week, Workstream had also filed a lawsuit in Delaware's Superior Court to obtain the $5-million termination fee for the deal, which was unexpectedly aborted on June 13.
The company did not give any reasons for the termination of the agreement.
Empagio and Workstream had signed a definitive agreement on Feb. 13 for the deal, which would have seen Workstream merging with the operating holding company of Empagio. Empagio would have owned 75 per cent of the merged entity, while Workstream would have owned the remaining quarter, and Empagio CEO Seth Bernstein would have become a 60-per-cent majority stakeholder of the company and CEO of the combined company.
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