DALLAS – MARCH 9, 2011
Wick Phillips, a full-service business law firm, announces an important verdict has been issued by a federal judge in the Northern District of Texas, in a suit filed by Wick Phillips’ client, BroadStar Wind Systems Group, a leading innovator of wind turbine technology based in Dallas.
In February 2010, BroadStar initiated suit against former officer and co-founder, Thomas Stephens, alleging that Mr. Stephens was engaging in activities designed to cripple the business in order to secure ownership of its AeroCam technology. A unique wind turbine designed to be mounted on free-standing towers at commercial and industrial sites, the AeroCam technology is considered the first truly viable wind energy solution for the commercial environment.
The suit was filed shortly after BroadStar and its related entities received a $6 million commitment from a Connecticut investor with plans to help the company develop and bring the revolutionary technology to market. As a result of Mr. Stephens’s actions, however, the Company was unable to raise additional needed capital. Without the needed funding, it was forced to file for Chapter 11 bankruptcy protection on May 11, 2010.
The bankruptcy and the Stephens lawsuit have proceeded concurrently, as the outcome of the Chapter 11 case is directly affected by the resolution of the Stephens litigation. In a decision issued by U.S. District Judge W. Royal Furgeson, Jr., the Court ruled that the central technology at issue is the rightful property of the Company, thus rejecting Mr. Stephens’ attempts to unwind the earlier $6 million transaction.
“This decision is a big victory for BroadStar,” said Andrew M. Gould, lead counsel of the Wick Phillips team representing BroadStar. “This case is critical for our client. On a broader scale, the decision reflects that multi-million dollar transactions negotiated over many months by individuals and companies represented by counsel will be honored and enforced.”
The Wick Phillips team working on the BroadStar case includes partner Andrew Gould, partner Marcia N. Jackson and associate Angeleque Linville. The case is BroadStar Wind Systems Group, et al. v. Thomas G. Stephens, et al., Case No. 3:10-cv-0369-F, in the U.S. District Court for the Northern District of Texas, appeal docketed, No. 11-10025 (5th Cir. Jan. 11, 2011)). The bankruptcy matter, In Re. BroadStar Wind Systems Group, Case No. 10-33373-BJH (N.D. Tex. Bankr.) is being prosecuted by the Dallas Office of Andrews Kurth, LLP.
A leading business law firm with offices in Dallas and Fort Worth, Wick Phillips provides a full spectrum of legal services. Andrew Gould heads the firm’s Labor and Employment Practice, is Board Certified in the area of Labor and Employment Law, and specializes in representing businesses in all facets of employment law and related litigation.
About BroadStar Wind Systems: Founded in 2004 BroadStar Wind Systems, is a Dallas-based engineering and technology firm, comprised of experts in aerodynamics and turbine physics, which has developed a breakthrough technology solution for the efficient and affordable generation of wind power. With its scientifically proven and aerodynamically efficient AeroCam turbine, BroadStar makes wind-power generation more accessible and affordable, and delivers a measurable return on investment more quickly than competitive solutions. Visit www.broadstarwindsystems.com for more information.
About Wick Phillips: Wick Phillips is a full service business law firm with offices in Dallas and Fort Worth. Its transactional section handles multiple M&A, financing, real estate, private equity and other commercial matters for a variety of clients. For more information visit www.wickphillips.com.
