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Negotiations for the sale of an Austin business have erupted into a $30 million lawsuit alleging a string of broken promises.
The suit, filed by CyberGuard Corp. of Florida, involves the ownership of its Austinbased subsidiary, TradeWave. The company, which spun out of the Microelectronics and Computer Technology Corp., operates a futures trading system called Oasis which is used by the majority of the nation's power companies.
CyberGuard, which bought TradeWave two years ago, agreed to sell it to Utahbased Digital Signature Trust Co., according to the suit. After the sale closed April 30, however, the suit alleges DST began to renege on several obligations - threatening TradeWave's future and exposing CyberGuard to serious financial harm.
DST representatives could not be reached for comment, and plaintiff's attorney Michael Scanes says the company has yet to file an answer to the suit.
"It's pending, but the parties are discussing settlement, so it's kind of being held in abeyance," says Scanes, a lawyer with Waco firm Naman, Howell, Smith and Lee.