Fidelis Also Names Partner One Capital CEO Daniel G. Charron As Defendant In Its Lawsuit Demanding $100 Million Dollars Including Punitive Damages

BETHESDA, MD / ACCESSWIRE / August 17, 2023 / Fidelis CyberSecurity, Inc. (Fidelis), a provider of fully-integrated IT data, assets and services defense technology for commercial, enterprise and governmental agency clients worldwide, has filed a $100 million dollar lawsuit against Quebec-based Partner One Capital, Inc. (financially backed by Fonds de solidarité FTQ) and its CEO Daniel G. Charron alleging Fraud, Bad Faith and Breach of Contract. Filed in Federal court in Maryland (Greenbelt Division), the Complaint alleges that PartnerOne, under the direction of Charron, manipulated negotiations around its binding contract with Fidelis Cybersecurity and used highly secretive information obtained under a confidentiality agreement to purchase the Company's assets at 25 cents on the dollar during foreclosure.

As alleged in the Complaint, since late 2019, Fidelis Cybersecurity shareholders invested over $55 million towards the expansion of operations, security products and services. In September 2022, the Company began exploring its strategic options, including a potential sale, which began the start of formal negotiations with PartnerOne and Charron.

The Complaint alleges in specific detail how PartnerOne and Charron used fraud and deceit to manipulate Fidelis into believing they were acting in good faith yet terminated their binding contract at the most inopportune moment, while having used a more than six-month due diligence phase to covertly secure critical confidential information to purchase the Company assets at a fraction of the negotiated acquisition price.

Fidelis' Complaint further alleges that, following in the wake of PartnerOne and Charron's bad acts, many of the Company's employees were left stranded as they were not transferred with the assets, causing significant job losses along with non-payment of monies owed to vendors and the building's landlords. During foreclosure, PartnerOne was able to pick and choose employees, vendors and other liabilities and leave the rest on the scrapheap.

"We believed we had found a good custodian for our customers, vendors and employees in PartnerOne," said Shrikar Kasturi, President of Fidelis CyberSecurity in a prepared statement (see attached). "However, they abruptly terminated the Agreement just days before the scheduled closing. This caused irreparable damage to the Company, leading the lender to foreclose on the assets of Fidelis Cybersecurity. To our shock and dismay, just two weeks later PartnerOne ended up being the successful bidder in the foreclosure process for significantly less than what was agreed in the binding contract."

Link to Complaint: https://highq.in/r18qai4gtu

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MEDIA CONTACT:
Steve Syatt
SSA Public Relations
steve@ssapr.com

Statement From Fidelis CyberSecurity, Inc. President Shrikar Kasturi

Since the acquisition of Fidelis CyberSecurity, Inc. (Fidelis) in late 2019, the shareholders invested over $55m of equity in the company. In September 2022, the Company launched a formal process to explore strategic options, including a potential sale. We believed we had found a good custodian for our customers, vendors and employees in Partner One Capital, Inc., who signed a binding agreement. However, they abruptly terminated the Agreement just days before the scheduled closing. This caused irreparable damage to the Company, causing the lender to foreclose on the assets of Fidelis.

To our shock and dismay, PartnerOne ended up being the successful bidder in the foreclosure process for significantly less than what was agreed in the Agreement. Regrettably, not all employees were transferred with the assets, causing immediate job losses for a significant number of employees left behind and some vendors and landlords who also did not get their dues.

As we allege in the Complaint, filed in Federal court in Maryland, PartnerOne used confidential information obtained under a confidentiality agreement to position itself as the successful bidder. The result, as the lawsuit alleges, is that PartnerOne was able to use all the due diligence material it secured from the Company, as well as information it gained from Fidelis employees, to be able to buy the assets at 25 cents on the dollar in foreclosure.

SOURCE: Fidelis CyberSecurity