Powertec Sues N. H. Firm, Says Assets Were Misstated

What appeared to be a friendly acquisition two months ago of a New Hampshire firm by Chatsworth-based Powertec has turned into a feud.

Powertec, which makes power-switching equipment used in computers, last week sued Scivest, a New Hampshire firm formerly known as Semiconductor Circuits, accusing the company of overstating the assets it sold Powertec by $1.4 million.

The Powertec suit, filed in Los Angeles Superior Court, also accuses Paul J. LaBrie, Scivest’s chairman, of unspecified conflicts of interest related to distributor agreements. The suit seeks $1.4 million in general damages and $5 million in punitive damages.

The Powertec suit came three weeks after LaBrie brought a case in Concord, N. H., accusing Powertec of failing to make payments as scheduled under the acquisition agreement. LaBrie is seeking the appointment of a receiver to take control of the assets Powertec bought.

Powertec agreed in November to pay $4.5 million in cash for the acquisition and to make additional payments of stock based on how well the unit performs over the next three years.