Stockwatch Daily6 May 2019By Mike Caswell
RYU APPAREL Inc. is a defendant in a lawsuit filed in the Supreme Court of British Columbia by a designer seeking unpaid fees. The designer says that it had an agreement entitling it to $525,000 over 24 months, but RYU recently stopped paying. The suit seeks $158,956.
The allegations are contained in a brief notice of claim filed at the Vancouver courthouse on April 24, 2019. The plaintiff is Squamish Design Studio Ltd. which, as its name suggests, is located in Squamish. It identifies itself as a designer of apparel and bags.
According to the suit, RYU entered into an agreement with Squamish Design Studio on June 25, 2018, in which RYU would pay $525,000 spread over 24 months. RYU paid the agreed upon amount up until December, 2018, but has paid nothing since. According to the suit, RYU notified Squami sh Stu dio on March 27, 2019, that it would not be paying anything. Squamish Studio says that RYU owes it $158,956 (it does not say how it arrived at the figure), and is seeking the court-ordered payment of that amount. It is also seeking a declaration that RYU has breached the agreement between the companies. Squamish lawyer Douglas Chiasson filed the lawsuit on behalf of Squamish Studio.
RYU has not yet filed its response. The stock closed at 5.5 cents Friday, down half a cent and well off its 52-week high of 23 cents.