* Siemens accused of claiming baseless default
* Lawsuit filed in New York state court in Manhattan
By Karen Freifeld
NEW YORK, March 22 (Reuters) - A joint venture between Siemens AG and Florida-based financial firm First Capital was sued over its cancellation of an initial public offering for a security alarm servicing company.
The lawsuit, filed Wednesday in New York state Supreme Court, accused Siemens First Capital Commercial Finance of “intentionally destroying” Alarm Funding LLC and two related companies.
Whitecap Fund I, majority owner of Alarm Funding, said in court papers that Siemens claimed the Alarm Funding companies defaulted on an $85 million loan because the IPO wasn’t completed by March 1, 2011.
Whitecap said $47 million had already been repaid and that no payment had ever been missed. Siemens took control, it says, and canceled the IPO, which was expected to close in mid-April 2011. The lawsuit seeks at least $20 million in damages.
“Siemens double crossed the Alarm Funding Companies, and breached its contract, by calling off the IPO just as it was about to be consummated,” according to the lawsuit.
Alarm Funding, a purchaser of service contracts from alarm system retailers, was launched in 2005 by Whitecap with Security Associates International Inc, a security alarm company, according to the lawsuit.
A spokeswoman for Siemens AG, a Munich-based engineering company, declined to comment. First Capital had no immediate comment.
The case is Whitecap (US) Fund I LP v Siemens First Capital Commercial Finance LLC 650888/2012, New York state Supreme Court.