PHILADELPHIA--(BUSINESS WIRE)--Powerweb Energy, Inc. announced that its lawsuit against two subsidiaries of Shelton, CT-based Hubbell Incorporated (NYSE: HUBA/HUBB) will be ready for trial in February 2014 (U.S.D.C., D. Conn, No. 3:12-CV-00220). The $1,284,198,346 sought is an expert’s assessment of lost profits and residual value under a series of intellectual property contracts.
Hubbell is one of the largest US lighting manufacturers. Powerweb sued its subsidiaries Hubbell Lighting, Inc., which makes more than 20 brands of lighting products, and Hubbell Building Automation, Inc., which sells automated lighting controls. Hubbell’s subsidiaries lost the first major court decision, when a federal judge in Connecticut denied their motion to dismiss the lawsuit. Now they face a jury trial for misuse of information regarding Powerweb’s Atrium, a breakthrough technology that enables lighting fixtures to be controlled by a wireless network.
THE AGREEMENT TO LICENSE POWERWEB’S TECHNOLOGY
Atrium reduces the installation cost of lighting controls by 75% (no wires) and can be installed in lighting fixtures when they are made or after they are sold. Understanding the potential of this revolutionary technology, the Hubbell companies entered into multi-year licensing and non-disclosure agreements with Powerweb to deploy Atrium products throughout North America under the brand name “Wi-Con.” For more than two years, Powerweb worked on a product development team that included more than a dozen employees of the Hubbell companies and shared patented technologies, trade secrets, and know-how with the team’s members.
THE UNAUTHORIZED USE OF POWERWEB’S TECHNOLOGY
The Hubbell companies used Powerweb’s information to develop a system that they call “wiHUBB” (instead of “Wi-Con”), which they are selling without any payment to Powerweb. As a result, Powerweb has sued them for breach of contract (Count I), breach of the duty of good faith and fair dealing (Count II), unjust enrichment (Count III), misappropriation of trade secrets (Count IV), misappropriation of idea (Count V), conversion (Count VI), breach of fiduciary duty (Count VII), and unfair trade practices (Count VIII). In November 2012, the court denied a motion to dismiss the complaint, holding that the facts alleged were sufficient for each asserted claim. This decision and other public court documents are available at www.hubbellpowerweblitigation.com
POWERWEB’S CLAIM FOR DAMAGES
Powerweb’s expert, Rod P. Burkert, CPA/ABV, CVA, of Burkert Valuation Advisors, LLC, has calculated damages to a reasonable degree of professional certainty by projecting lost profits after deducting avoided costs and reducing the net amounts to present value. His projected damages are $803,365,631 for the seven-year term of the license agreement, or $1,284,198,346 including lost residual value at expiration of the term.
ABOUT POWERWEB
Powerweb Energy, Inc. (www.2powerweb.com) is a privately held corporation based in Philadelphia, Pennsylvania. For the past 15 years, Powerweb and related companies have provided leading edge technology solutions and intellectual property licenses to Fortune 500 companies focused in the energy sectors. Clients have included General Electric, SAIC, Department of Defense, Pepco Energy, Baltimore Gas & Electric, Long Island Power Authority, Northeast Utilities, Conectiv Energy, Constellation Energy and PJM.