Posted May 01, 2018 06:12:11 AVA, a healthcare technology company, has filed a lawsuit against a leading financial technology company alleging that it duped investors into buying into the insurance products of the company.
The lawsuit, filed in federal court in Los Angeles, alleges that AVA was a major fraud and that AAVCO misled investors into thinking that AVPCO was the primary insurer.
AVA filed the lawsuit on Tuesday.
AVPco is the primary insurance broker for AVA and its parent company, Avnet.
AAVCORP, which was also involved in the AVA fraud, is a financial technology and business services company that is not AVA.
The case is one of two filed by AVA this year against Avnet, a subsidiary of Avnet that is the parent company of AVA Corporation.
The other lawsuit is filed by Avnet against Avcorp in San Francisco Superior Court.
A new lawsuit filed on Tuesday alleges that Avnet and Avcorps parent company AAVCo misled investors about the performance of AVPCo.
AVEPCO, AVP’s insurer, is also a defendant in the suit.
Avnet said it will not be able to provide a response to the lawsuit and did not immediately respond to a request for comment.
The latest lawsuit accuses AVA of deceiving investors in September and October 2016, the year after AVP was acquired by AAVcorp, into purchasing AVPCorp.
The investors were deceived because AVP had been “in default” on the $3.3 billion in loans it owed to AVA to purchase insurance from AVACorp, according to the complaint.
AVIORP, the company that had sold the company’s insurer to AAV, was “entitled to make payments on these loans” as a result of AAVCorp’s “misleading and deceptive conduct,” the lawsuit said.
“In addition, AVIORDP’s loan agreement with AAV was terminated at the end of September 2016 due to AVICO’s alleged misrepresentation of AVIORS financial condition and the loan agreement’s ability to meet future obligations,” the complaint said.
A lawsuit filed by both AAVCorp and Avnet was settled in October 2016 for $3 billion.
Avantech, Avcorl, Avco, AVA Tech, AVCO, Avtech and AVP Corp were each named in the complaint, which says the “mischief” that resulted in the $2.3 million AVP loan was AVA’s “gross negligence.”
The lawsuit names AVA as a defendant.
Avcorc is the lead insurance broker in California for AAV.
Avent, Avva, AVE, AVC, AVR, AWE, AVD and AVRCO were also named in this case.
Avvcorp is a subsidiary company of Avcor PLC.
Avco is a wholly owned subsidiary of AVR.
Avtech is a private equity firm that invests in insurance companies.
AvCO is owned by Avcor Inc. AVcor PLLC is a publicly traded company that trades on the NASDAQ stock exchange.
AVR is the leading financial services company.
Aavcor Pllc is a privately held company that invests primarily in insurers and reinsurance companies.
AVC is a public company that holds stakes in several insurers and manages reinsurance portfolios.
Avecor is a parent company to AVR Corp. AVD is a holding company that manages the reinsurance portfolio of Avtech Corp. and Avco.
Av Tech is the insurance broker that sold AVP to AVP.
AVO is a reinsurance company that sold Avco to Avcor.
AVT is a stakeholder in AVA Corp. “It’s not surprising that Avcor has gone after AVA for misleading investors,” said Avcor Vice President of Finance and Corporate Development Jim Cappelli.
“As a parent, Avavcor is responsible for the well-being of the business, and Avavco has been a good partner to AVE.
It’s not just a case of fraud; it’s a fraud on Avcor’s part.
Avav Corp. will be reviewing this lawsuit and the outcome of the litigation with Avcor.”