An innovative LED lighting company is getting sued by a former shareholder and board chairman, according to court documents.
John Glasscock, who is associated with several startups, is suing LumaStream for $3.7 million after not receiving a $3 million lump sum allegedly promised to him as a shareholder.
LumaStream was founded in 2010 by Eric Higgs and is based in St. Petersburg. The company uses LED lighting in innovative ways and most recently received a patent in November to allow them to break into the data industry.
Glasscock filed the lawsuit on July 3 for the amount, which is the lump sum plus the 8% interest it accrued up until May 19. He is also suing for an additional $79,000, which is past due on the promissory note, or note payable, according to the lawsuit.
"We are in the process of resolving this situation as quickly as possible in a manner that will satisfy all parties," Higgs said. "We continue to build value for all LumaStream stakeholders and greatly appreciate the support we have received from the St. Petersburg/Tampa startup community. We are in the strongest market position in the company’s history and are well-positioned for the next steps in our business evolution."
Glasscock's lawyers at Jones Legal Group were not immediately available for comment.
According to the complaint, on May 9, 2016, LumaStream's founder signed a document stating the company would pay Glasscock, a company shareholder, a $3 million lump sum plus 8 percent interest rate, which was a $38 million total divided among shareholders.
In addition to being a shareholder, Glasscock was also an investor in the company. According to an SEC filing, on May 22, 2017, he participated in an investment round along with six others to raise $399,987. Court documents show on Aug. 22, 2018, he loaned the company $100,000 which was due on Feb. 1, 2019, along with a $4,000 loan fee.
He also previously served as the chairman for LumaStream's board. He is no longer listed among LumaStream's executives on its website.
On May 23, Glasscock emailed George Gordon, president of LumaStream, and copied Higgins, demanding an immediate payment. On July 8, LumaStream executives were served a court summons.
