Magnis hit with new compensation claim by former US battery factory exec Paul Stratton

A former senior executive at Magnis Energy Technology’s New York factory has taken his fight against the ASX-listed battery and energy company back to Delaware courts.

The Imperium3 New York battery.

A former senior executive at Magnis Energy Technology’s battery plant has taken his fight against the ASX-listed battery and energy company back to Delaware courts, calling for compensation after being stripped of stock and options worth at least $US480,000 ($725,000).

In new papers filed with the Delaware Chancery Courts, Imperium3 New York former senior vice president Paul Stratton claims he missed out on a massive shareholding in the battery factory, 74 per cent owned by Magnis, after being removed after raising concerns over “multiple public misrepresentations”.

Mr Stratton claims he was concerned about “unethical and possibly illegal conduct” by Magnis chair Frank Poullas as well as iM3NY executives Chaitanya Sharma and its chair Shailesh Upreti as the men attempted to list the battery factory through a reverse special purpose acquisition company.

The case comes as the latest legal battle for Magnis to fight, after the teetering listed company was slapped with court action by the Australian Securities and Investments Commission over allegedly misleading the market.

ASIC claims Magnis and Poullas repeatedly misled Australian investors over the status of its battery factory, iM3NY, with the regulator claiming the company knew the factory was churning out unusable cells and was facing a financial wipe-out but failed to tell shareholders for more than a year.

Mr Stratton’s latest filing is his third claim against iM3NY and Magnis, after an earlier unsuccessful attempt in Delaware courts before taking his fight to New York.

Mr Stratton’s case seeks to make a claim for a shareholding in iM3NY or financial compensation for the shares he alleges a wage deal entitled him to.

Under a deal cut between Mr Stratton and iM3NY, the former executive claims he was entitled to shares in the battery company, with 25 per cent of his options to vest within 12 months and the remainder to strike incrementally over the following 36 months.

Mr Stratton claims he helped attract almost $US20m in backing for iM3NY in his time there.

But the former executive says he was stripped of his shares and options, including those already vested in the battery factory, when he tried to raise concerns over statements made to investors.

His latest claims come as Magnis’s US battery factory subsidiary is now in the hands of lenders, after Texas-based financiers Atlas Credit Partners moved in to take control of the operation after Magnis attempted a board coup to remove the directors of their partners in the joint venture.

This came amid financial turmoil for iM3NY, with lenders already warning the factory was in breach of a $US100m loan agreement with millions in debts to suppliers and unpaid interest.

Magnis and Mr Poullas did not respond to requests for comment.