ALLENTOWN — Shareholders in a Saudi Arabian company have filed a federal lawsuit against a Lehigh County firm.
Six shareholders of United Welding and Supplies Company filed a complaint Feb. 28 in the U.S. District Court for the Eastern District of Pennsylvania against Air Products and Chemicals. The shareholders are suing in their own capacity and on behalf of the company.
They allege Air Products promised it would only partner with United Welding in Saudi Arabia, but “used and then dropped” the company and induced United Welding’s “general manager to turn a blind eye to (its) blatant violations.”
According to the complaint, Air Products entered into a direct contract with Saudi Aramco, depriving United Welding of “the opportunity to participate in a project” with its historically largest customer.
The complaint lays out a timeline of the relationship between the two entities and alleges that although Air Products “circumvented the agreement” and the investors directed United Welding’s management to hire lawyers who investigated the situation and drafted a complaint, a private meeting with Air Products managers resulted in United Welding abandoning that lawsuit.
Lawyers from the Pittsburgh office of Jones Day are representing the investors.