Case Background

Galaxia Electronics Co., Ltd., a Korean corporation, manufactured and distributed LED light displays. Beginning in 2010, Galaxia sold goods to Luxmax U.S.A. and VER, delivering millions of dollars’ worth of products. Despite receiving the goods, Luxmax and VER defaulted on payments. In 2015 and 2016, both entities acknowledged specific sums owed to Galaxia. RWS Management, Inc. also signed agreements assuming Luxmax’s debts.

Cause

In 2016, Scarnechia, operating as POW Productions, allegedly made false promises to pay Galaxia’s debts. Relying on these promises, Galaxia shipped WinVision tiles. RWS failed to pay for the tiles delivered to POW. Galaxia claimed RWS, Scarnechia, and POW conspired to divert funds for their own benefit. Luxmax and RWS ultimately defaulted on payment obligations despite written acknowledgments and assurances.

Injury

Galaxia asserted it suffered significant financial losses due to the defendants’ fraudulent conduct and breaches of contract. These losses included unpaid debts, diverted funds, and expenses incurred while pursuing legal remedies.

Damages

The company sought compensatory and punitive damages, prejudgment and post-judgment interest, and recovery of legal costs. Galaxia claimed the defendants acted willfully and maliciously. As