Suit alleges partner shorted stock sale

By David Yates | Apr 27, 2011

Two business partners are in litigation over the sale of stock in their vending machine business.

David Flores filed suit against his business partner Corey Mills on April 20 in Jefferson County District Court. Richard Etheridge and Bertis Carrico are also defendants named in the suit.

Court records show that Flores and Mills have run O'Mar Amusement, a vending machine business, since 2001.

On June 19, 2009, Etheridge entered into a stock agreement with Mills to transfer 100 shares of his outstanding stock for $715,000. Court papers say $321,800 was paid immediately and the rest was to be paid in weekly installments.

"The final installment was paid to Etheridge on April 4, 2011, but he refused to deliver the stock," the suit states, adding that Etheridge, with Mills' approval, sold 50 shares to Carrico – Etheridge's "old friend and colleague."

In his suit, Flores says that since he and Mills were partners, Mills "did not have authority to sell any portion of stock without plaintiff's signature."

Flores is asking the court to issue a restraining order to prevent any more nonconsensual business dealings and an award of economic damages.

Attorney Michael Truncale of the Beaumont law firm Orgain, Bell & Tucker represents him.

Judge Gary Sanderson, 6oth District Court, has been assigned to the case.

Case No. B189-809

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