Benjamin Securities, Inc. (BSI) has filed a lawsuit against
ConnectM Technology Solutions, Inc., its Vice-Chairman Bala Padmakumar, and Padmakumar's former
company, Monterey Capital Acquisition Corp., for fraud
and breach of contract. The lawsuit, filed on August 2, 2024, in the New York Supreme Court,
seeks $525,000 in compensatory
damages and $525,000 in punitive
damages. BSI alleges it is owed $525,000 under a contract related to a business
combination between ConnectM and Monterey Capital Acquisition
Corp., which it claims has not been paid despite repeated demands.
ConnectM's recent SEC filing does not mention the lawsuit,
prompting BSI to notify the company's directors about the legal
risks of not disclosing the litigation.
PENSACOLA, Fla., Aug. 17,
2024 /PRNewswire-PRWeb/ -- Benjamin Securities, Inc.
("BSI"), a broker-dealer of securities and member of the Financial
Industry Regulatory Authority, today announced that it has
commenced litigation against ConnectM Technology Solutions, Inc.
(ConnectM) and the Vice-Chairman of its Board, Bala Padmakumar, as well as his former company,
Monterey Capital Acquisition Corp. ("Monterey") of which he is the Chief Executive
Officer.
Benjamin Securities, Inc. was constrained
to file this lawsuit because of the defendants' utter lack of
responsiveness to repeated demands for payment. They now will have
to answer for their inaction, and if they fail to appear, Benjamin
Securities, Inc. will move swiftly to seek a default
judgment.
The lawsuit, filed in the Supreme Court of the State of New York, County of New York, Index No. 157042/2024, on
August 2, 2024, was commenced with
the filing of a Summons With Notice stating that the nature of the
action is for fraud and breach of contract for which
compensatory damages of $525,000 and
an additional $525,000 in punitive
damages is sought.
On July 12, 2024, ConnectM issued
a press release announcing that it completed a business combination
with Monterey. According to a BSI
spokesperson, BSI was instrumental in the success of that
combination and pursuant to a written contract with both ConnectM
and Monterey is entitled to be,
but was not paid, the $525,000 sum
claimed as money damages in the lawsuit. The spokesperson added:
"BSI was constrained to file this lawsuit because of the
defendants' utter lack of responsiveness to BSI's repeated demands
for payment. They now will have to answer for their inaction and if
they fail to appear in the lawsuit within the time period
prescribed by law, BSI will move swiftly to seek a default judgment
against them."
ConnectM's most recent 8K filing with the Securities and
Exchange Commission ("SEC"), filed in August
2024, makes no mention of the lawsuit filed on August 2, 2024. In a letter sent by BSI's
litigation counsel on August 9, 2024,
to directors and officers of ConnectM and Monterey, including Bhaskar Panigraho,
Girish Subramanya, Mahesh Choudhury, Keven
Stateham (of ConnectM), Vivek
Soni, Leela Gray,
Daniel Davis, Kathy Cuocolo (of Monterey) as well as Mr. Padmakumar, BSI
placed them on notice of the legal risks inherent in failing to
file timely an 8K with the SEC
disclosing the litigation.
Media Contact
Micheal Coyne, Benjamin
Securities, Inc., 1 (516) 931-1090, mcoyne@benjaminsecurities.com,
BenjaminSecurities.com
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SOURCE Benjamin Securities, Inc.