Ex-ScripsAmerica CEO files motion to dismiss or transfer his former employer's case against him

By Shanice Harris | Apr 14, 2017

PHILADELPHIA — Defendant Robert Schneiderman has filed a motion to dismiss a lawsuit filed against him by ScripsAmerica Inc. Schneideman, in the alternative, asks to transfer the action to the U.S. District Court of Delaware.

ScripsAmerica was founded by Schneiderman, who served as its CEO until the company made allegations against him. ScripsAmerica originally sued Schneideman claiming that he committed illegal actions while he was CEO of the company.

Schneiderman filed his motion to dismiss in December.

In June 2015, before his ouster as CEO, Schneiderman and ScripsAmerica signed a Management Reorganization Agreement. The agreement stated that obligations and performances of all parties are subject to this agreement. 

Schneiderman says the agreement was also made under the laws of Delaware and should be interpreted by the Delaware jurisdiction.

Schneiderman sued ScripsAmerica for breach of subject agreement. ScripsAmerica admitted that it had not paid certain funds to Schneiderman, which was outlined in the agreement. 

In a countersuit, the plaintiff filed a complaint “as an exhibit to a motion Scrips filed in the Chapter 11 (bankruptcy) proceeding seeking to remove Mr. Schneiderman from the creditors committee,” the motion to dismiss says.

“That motion, and others, are now held in abeyance pending the outcome of settlement negotiations between the debtor and the creditors committee.”

Schneiderman also argued that he should not have to spend the time and expenses defending damages claims in Counts I and II because they may not be sustainable in light in the provisions of the agreement. He says fraud must be proven by clear evidence in Delaware. 

Because of this, Schneiderman claimed that Counts I and II of the ScripsAmerica complaint fail to state facts which would grant relief.

Schneiderman's motion suggests that the court should dismiss Counts I and II of the plaintiff's complaint. It also urges that the court “retain jurisdiction of the declaratory judgment action, or in the alternative, transfer the entire action to the U.S. Bankruptcy Court for the District of Delaware.”

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ScripsAmerica Inc U.S. District Court for the Eastern District of Pennsylvania

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