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Vizio sues LeEco in the wake of their failed $2 billion deal

Vizio sues LeEco in the wake of their failed $2 billion deal
From Engadget - July 12, 2017

Variety has posted a copy of the Santa Ana court filing, which makes the claim that LeEco's representatives knew it was not financially healthy enough to pull off the $2 billion purchase. As a result, the lawsuit alleges LeEco's true aim was to create a false impression of its financial health, as well as gain access to its corporate customers, decision makers and "confidential customer information that had been developed by Vizio." It's unclear whether that last bit refers to the Inscape automated content recognition and viewer tracking scheme that the FCC slapped Vizio's wrist over earlier this year, but clearly, the two companies have some issues to work out.

Now, Vizio claims that LeEco only paid $40 million of an arranged $100 million termination fee, and used the promise of a joint venture/app deal to try and get out of paying the rest. Lately, the news around LeEco has focused on how much money it's losing, a Chinese court froze its assets and its automaker affiliate Faraday Future has canceled plans for a Las Vegas plant.

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