ATLANTA (CN) - The son of civil rights leader Andrew Young lied about his company's profit distribution to avoid paying more than $1 million for envelopes, a printing company claims in court.
Cenveo Corp. sued Young Solutions Inc. and Andrew Young III, in Federal Court.
Young, who goes by the nickname "Bo", is the son of former Congressman and former Atlanta mayor Andrew Young II, a contemporary of Martin Luther King, Jr.
Cenveo claims that Young Solutions became a client in October 2009, but fell behind on payments for envelopes by the summer of 2012 and now owes it more than $1.1 million.
Cenveo claims it contacted Young personally about repaying the debts, and that he assured the company he would pay it back, claiming "(1) that he did not pay himself a salary, travel or entertain; (2) that he terminated all but one employee; (3) that the sole reason he continues to keep the business open is to try to repay Cenveo; (4) that all his profits go to Cenveo with the exception of rent, phones and the salary for one part-time employee."
"Young also represented that approximately 85 percent of Young's net profits had been and would continue to be utilized to pay the amounts owed to Cenveo," according to the complaint.
The printing company claims it continued to provide envelopes to Young and his company, but it eventually discovered that "despite Young's representations that he was not paying himself a salary and that he was directing approximately 85 percent of the net profits of Young Solutions to pay down Cenveo's past due receivable, Young, on information and belief, was diverting these additional profits to his own benefit."
Cenveo seeks $1.1 million plus punitive damages for breach of contract, unjust enrichment and misrepresentation.
It is represented by William Hill Jr., with Polsinelli PC.
None of the parties in the complaint could be reached for comment Tuesday.