Grandis Et Al V. Bgis Global Integrated Solutions Us, Llc Et Al

Case Background

On August 9, 2022, Devin Grandis filed a breach of contract lawsuit against BGIS Global Integrated Solutions US LLC (“BGIS”). It was alleged that Devin's employment contract was violated without valid reason and even after his termination, BGIS continued to use his signature without permission.

The lawsuit was filed in the United States District Court, Florida Southern (Ft Lauderdale). The lawsuit was assigned to Judge Jacqueline Becerra and referred to Magistrate Judge Alicia O. Valle. [Case number: 0:22cv61477]

Cause

APT, a family-owned company founded by Grandis in 1994, became a major U.S. provider of electrical, lighting, signage, and energy management services. By December 2021, it employed about 150 people. BGIS, a global firm offering facility management, technical services, and energy solutions with over 10,000 employees, saw APT as an attractive acquisition target. BGIS purchased nearly all of APT's assets in December 2021, including equipment, vehicles, and intellectual property, for a low initial price. The deal included earnout payments based on APT’s financial performance in 2022 and 2023.

After the sale, BGIS took actions to manipulate earnings and undervalue APT’s business, aiming to avoid paying the deferred purchase price tied to APT's performance. Although BGIS had agreed to pay APT up to $15 million, it reduced the upfront payment to around $4.5 million, using it to settle a lien on APT’s assets, and increased the earnout potential. By the end of 2023, BGIS had paid nothing to APT or Grandis.

Under the asset purchase agreement, BGIS was required to calculate APT's working capital, but it delayed this process and manipulated figures to claim that APT owed BGIS $717,778. Additionally, BGIS entered into an employment contract with Grandis, offering a base salary, stock options, bonuses, and severance benefits. However, BGIS breached the contract by not providing Grandis with the promised stock option benefits and wrongfully terminating his employment.