Leonardo Corporation and Mr. Rossi also have repeatedly breached their agreements. At the conclusion of these proceedings we are confident that the claims of Mr. Rossi and Leonardo Corporation will be rejected.
Although there does seem to be solid evidence of low levels of excess heat from cold fusion, the larger claims of commercial levels of energy seem to clearly be fraudulent.
Rossi is suingRaleigh investors Thomas Darden and JT Vaughn, along with their companies, investment firm Cherokee Investment Partners and clean-tech startup Industrial Heat., Rossi alleges both the venture and its investors owe him $89 million for a cold-fusion invention he insists he's validated.
At the heart of the suit is a controversial invention Rossi calls the “Energy Catalyzer” or “E-Cat," a black box he claims generates a low energy nuclear reaction – cold fusion. If it works, it’s a cheaper, greener way to generate a huge amount of energy, no coal plant required.
In the suit filed Tuesday, Rossi claims Darden and Vaughn contacted him in 2012 about licensing his science for $100.5 million.
According to the complaint, the sum of $1.5 million was to be paid upon the execution of the license agreement, with $10 million to be paid upon successful completion of a 24-hour validation test. Rossi further claims that the remaining $89 million would be paid after a 350-day test period, with both tests to be performed by independent experts. Darden and Vaughn created a company to research the technology, Raleigh-based Industrial Heat.
Both the licensing payment and the first test fee were paid and in 2013 an E-Cat Unit was delivered to a Raleigh facility to prepare for the final test, the suit alleges. That’s where Rossi says the deal started to sour, with Industrial Heat’s alleged “inability or failure to secure an adequate facility” where the test could be completed, preventing him from completing that final milestone in accordance with the initial agreement.
In late 2015, Industrial Heat is expanding its operations into a 20,000-square-foot lab space in Cary, North Carolina
SOURCES - NC Triangle Biz Journals, PR Newswire