Falkbuilt Ltd and its co-founders sue DIRTT Environmental Solutions for $22M

Falkbuilt Ltd. and its co-founders, Mogens Smed and Barrie Loberg, have, regretfully, filed a counterclaim in the Court of Queen’s Bench of Alberta seeking $22M in damages from DIRTT Environmental Solutions, Inc. DIRTT Environmental Solutions LTD and former DIRTT CEO, Kevin O’Meara.

The 20-page document, filed today, comes after a series of failed legal actions by DIRTT against Falkbuilt, Smed and Loberg. Several US Courts have dismissed DIRTT’s legal actions, finding no wrongdoing or liability on the part of Falkbuilt.

“We truly regret the need for taking this action against our former company but this mean-spirited personal vendetta, with absolutely no legal merit, has created extensive damages for Falkbuilt and our Falkbuilt Factory Direct Branches,” says Smed, CEO of Falkbuilt.

Smed and Loberg founded DIRTT in 2004. DIRTT terminated Smed’s employment, without cause, in September 2018. Loberg was terminated, without cause, in January 2019. Upon their departure from DIRTT, the Company refused to pay contractually agreed to termination and bonus payments as well as other forms of compensation.

Falkbuilt’s co-founders seek these payments in full, totaling $2M. As well, the Company, Smed and Loberg seek $20M for damages for a series of defamatory comments made by DIRTT and O’Meara, as well as a number of actions intended to interfere in Falkbuilt’s business operations.

The lengthy counterclaim details a series of improper actions by DIRTT, its agents and O’Meara. These include issuing a press release rife with highly damaging and defamatory comments; sharing fraudulent misrepresentations directly with Falkbuilt investors, potential investors, customers, vendors, and potential employees; as well having DIRTT employees/agents secretly record conversations with Smed, Loberg and Falkbuilt employees in an effort to unlawfully obtain information about the business.

Efforts to settle these matters with DIRTT have been unsuccessful. “While we have come, reluctantly, to the decision to take legal action and pursue damages, we want to make it abundantly clear that this does not in any way reflect any ill will toward DIRTT’s new Board of Directors, its management or employees.” says Smed. “We have stated repeatedly that we want nothing but success for DIRTT; the company that we founded almost 20 years ago.”