Eos cofounders seem to be lining up to sue Jonathan Teller, who is said to have founded the business with money from his mother.
A second cofounder, Bion Bartning, filed a complaint Friday in the Supreme Court of the State of New York suing Teller and The Kind Group, Eos’ parent company, seeking damages and for Teller to repay funds he allegedly used from The Kind Group for personal expenses. The suit follows one from a different cofounder, Sanjiv Mehra, who sued Teller in October, which also alleged lavish spending.
While Mehra says he was forced out of the company recently, Bartning said in court papers that he was forced out in late 2008.
Bartning said in court papers that he was brought into the company as chief operating officer in 2006 with a 20 percent stake that Teller gradually reduced to 0.1 percent “while simultaneously withdrawing approximately $100 million from the company for his personal use.”
Bartning said he only learned of “these deceitful acts” once Mehra’s lawsuit was filed in October. He said he asked for records from The Kind Group, seeking to determine how his own share in the company was reduced, but that the company still has not provided adequate answers.
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In the new suit, Bartning is seeking a declaratory judgment against The Kind Group for beach of contract and alleging Teller breached fiduciary duty. Bartning also alleges Teller wasted and mismanaged corporate funds.
A spokesperson for Eos did not immediately respond to a request for comment.
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