Golden Gate Communications will stop spending good money after bad in Allios $1.25 million lawsuit

In Featured News by Wireless Estimator


PLAINTIFF DECIDES NOT TO BURN ANY MORE BENJAMINS – Golden Gate Communications filed a motion Thursday to dismiss its $1.25 million lawsuit against Allios. Not because the company paid its 403 outstanding invoices but because the distributor would be unsuccessful in securing non-existent assets if they won and didn’t want to incur additional legal fees.

Last December, California-based Golden Gate Communications, LLC sued Allios, Inc. for $1.25 million for 403 invoices that were never paid for products purchased from the telecom distributor to construct AT&T’s and other industry projects.

Last Thursday, the Santa Barbara company filed a motion with the U.S. District Court in the Eastern District of Texas to dismiss the complaint without prejudice in “furtherance of judicial economy and efficiency.”

Allios is a subsidiary of Infiniux that also managed under its umbrella of companies Nexius, Velex, Velex SI, AccuV, Allios, Intelgica, and MyndCo, which have shuttered their doors, owing industry suppliers and contractors $95 million or more.

Golden Gate said in its filing that “on or around January 20, 2023, Defendant sold all of its assets to a third party. Since the asset sale, the parties’ counsel have continued discussions to attempt to resolve the issues in dispute.”

However, Golden Gate dropped the lawsuit since a response to a court request to file an amended complaint regarding a jurisdiction issue was due Thursday. Although Golden Gate said it could comply with the order, it didn’t want to incur additional legal fees.

“In order to conserve the parties’ and the court’s resources and to more effectively negotiate a resolution of the issues underlying this action with Defendant and/or the third party that purchased Defendant’s assets,” Golden Gate said it wanted to dismiss the complaint.

The third party was MasTec Network Solutions, who became aware of Nexius’s cash crunch and worked out a deal with Nexius’s lender, PNC Bank, to purchase the assets secured by the bank’s loans.

On March 3, MasTec emailed its contractors and suppliers and said the company had purchased Nexius’ assets but didn’t assume any liabilities.

However, in the same correspondence, MasTec said that they intended, “whenever commercially feasible and provided it can reach a mutually acceptable arrangement with certain former Nexius customers,” to complete existing projects.

MasTec provided a form to vendors, requesting that they complete the document with invoices and detailed backup for their claims against Nexius and submit it to vendor management by March 20.

Two distributors informed Wireless Estimator yesterday that they had submitted the forms but had not heard back from MasTec. Many creditors see the offer to review outstanding obligations as an attempt to keep contractors from filing liens on AT&T’s and other carriers’ projects.

It’s unlikely that MasTec will reimburse Golden Gate, nor will Allios negotiate a resolution since Golden Gate said they had tried to contact Allios’s attorney twice before filing their motion, but he did not respond.

The owners of Allios, Nexius, and its other subsidiaries are unknown. However, it has been identified that Allios, Nexius, and Velex are owned by NWON, LLC, incorporated in Delaware on July 23, 2018. The Delaware Division of Corporations will not provide any additional information.

Neither NWON nor any of the Infiniux subsidiaries have filed for bankruptcy.