The latest chapter in the often-bizarre saga of technology start-up Infinium Labs has unfolded in the USA, with investment bank SBI-USA filing a lawsuit against the prospective platform holder for fraud and breach of contract.
According to SBI, it had a deal with Infinium to provide investment banking services and advice, and should have been paid a percentage of all of the financing Infinium acquired - but no payment has been forthcoming.
SBI claims that Infinium raised more than $30 million through various forms of financing including private investment and sale of stock in the year following its deal with the company - although the company's balance sheet lists less than $24 million in total finance since its inception, and closer to $10 million in the period described by SBI.
Indeed, Infinium - which hopes to launch its Phantom Game Service next year, but requires additional investment of over $10 million to do so - strongly denies the claims made by SBI, arguing that not only is the $30 million figure grossly overstated, but that the nature of SBI's deal with Infinium is also mis-represented.
"This lawsuit is entirely without merit," thundered Infinium CEO Timothy Roberts in a statement on the case, "and SBI's news release misstates the now-terminated agreement between the parties as well as the amounts raised by the Company, which are set forth in our public filings for the benefit of our investors."
"Infinium's agreement with SBI provided that SBI would be paid, under certain circumstances, for investments made by parties with whom SBI had a pre-existing substantive relationship," he continued. "SBI was wholly unsuccessful in its efforts and was unable to raise any funding whatsoever from such investors. As a result, Infinium terminated its agreement with SBI."