Ecoark Holdings and Zest Labs’ Lawsuit Against Deloitte Moves Forward

Rhea-AI Summary

Ecoark Holdings, Inc. (ZEST) announced that a Nevada state judge denied Deloitte's motion to dismiss its complaint alleging violations of the Nevada Uniform Trade Secrets Act. The court ruling allows Ecoark and its subsidiary, Zest Labs, to proceed with their claims, seeking compensatory damages, attorney’s fees, and punitive damages. Chairman and CEO Randy May expressed confidence in the merits of their case against Deloitte, emphasizing the importance of confidentiality in business dealings. The case number is A-21-841379-B, filed in Clark County, Nevada.

Positive

• Court ruling allows the case against Deloitte to proceed, providing Ecoark with a chance to recover damages.
• The lawsuit highlights the importance of protecting trade secrets, which can enhance investor confidence.

Negative

• The lawsuit could incur significant legal costs, impacting financial resources.
• Ongoing litigation may distract management from core business operations.

Deloitte motion to dismiss complaint denied by Nevada state judge

SAN ANTONIO, March 10, 2022 (GLOBE NEWSWIRE) -- Ecoark Holdings, Inc. (“Ecoark”) (NASDAQ: ZEST) today announced that a Nevada state court judge denied Deloitte Consulting LLP’s (“Deloitte”) motion to dismiss Ecoark’s complaint. Ecoark and its wholly-owned subsidiary, Zest Labs, Inc., filed suit against Deloitte alleging violations of the Nevada Uniform Trade Secrets Act. In addition to compensatory damages, the plaintiffs are seeking injunctive relief, attorney’s fees, and punitive damages.

“We feel validated that the state judge ruled our claims against Deloitte have enough merit to move forward to the discovery phase,” stated Randy May, Chairman and CEO of Ecoark. “Deloitte is one of the 4 largest professional services firms on the planet. Companies like ours expect others to honor confidentiality agreements when entrusting them with trade secrets. While Deloitte will likely deny our allegations, we look forward to our day in court. Besides recovering damages our company and its shareholders have incurred, we also hope any attention surrounding this case will help protect other businesses and their trade secrets.”   

For more details about the filed complaint, please review public filings for case number A-21-841379-B, filed in the Eighth Judicial District Court in Clark County, Nevada.     

About Ecoark Holdings, Inc.

Founded in 2011, Ecoark is a diversified holding company. The company has three wholly-owned principal subsidiaries: Zest Labs, Inc. (“Zest Labs”), Banner Midstream Corp (“Banner Midstream”) and Agora Digital Holdings Inc. (“Agora”), the parent of Trend Holdings, LLC (“Trend”). Zest Labs, offers the Zest Fresh™ solution, a breakthrough approach to quality management of fresh food, is specifically designed to help substantially reduce the $161 billion amount of food loss the U.S. experiences each year. Banner Midstream is engaged in oil and gas exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Texas, Louisiana, and Mississippi. Banner Midstream also provides transportation and logistics services and procures and finances equipment to oilfield transportation services contractors. Agora was formed to acquire Trend and its new cryptocurrency mining subsidiary, Bitstream Mining LLC. In addition to leading this new business opportunity, Trend invests in a select number of early-stage startups each year as part of the fund’s venture capital strategy; it is an open-minded investor with a founder-first mentality. A Trend subsidiary, Trend Discovery LP, has an audited track record of uncorrelated outperformance of the S&P 500 since inception.

ZEST FRESH™ and Zest Labs™ are trademarks of Zest Labs, Inc.

Contact:

Investor Relations:
Marc Silverberg, ICR
Brian McBride, Ecoark
1-800-762-7293
investorrelations@ecoarkusa.com

FAQ

What is the outcome of Ecoark's lawsuit against Deloitte?

A Nevada state judge denied Deloitte's motion to dismiss Ecoark's complaint, allowing the case to proceed.

What are the allegations in Ecoark's lawsuit against Deloitte?

Ecoark alleges violations of the Nevada Uniform Trade Secrets Act.

What damages is Ecoark seeking from Deloitte?

Ecoark is seeking compensatory damages, attorney’s fees, and punitive damages.

When was the legal complaint filed by Ecoark against Deloitte?

The complaint was filed under case number A-21-841379-B.

How does the court ruling affect Ecoark's shareholders?

The ruling may improve investor confidence by validating Ecoark's claims and the protection of trade secrets.