Lawsuit filed against Milwaukee Wave, team CEO Sue Black
MILWAUKEE (WITI) -- FOX6 News has learned the Milwaukee Wave, and Milwaukee Wave CEO/Owner Sue Black are being sued. The lawsuit alleges Black and the Wave have failed to repay two loans, and have failed to pay invoices for promotional merchandise.
The plaintiffs in this case, bringing the suit are Thomas Phillips of Caledonia and A&J Promotions of Franklin.
A copy of the lawsuit says shortly after Black became the Wave's owner, she borrowed $200,000 from Phillips to help her fund the business.
The two entered into a promissory note on March 9th, 2013, memorializing the terms of this loan.
Under the promissory note, Black agreed to repay Phillips the entire principal balance of $200,000, plus all accrued interest (at an interest rate of 6% per year), by March 13th of 2014.
The promissory note said Black could prepay without penalty, but said partial prepayments should be applied to the principal in the inverse order of maturity and should not delay due dates or change the amount of remaining payments until the note is paid in full.
Finally, the promissory note provided that Black agree to pay all costs and expenses of collection should she default on obligations to repay.
The lawsuit says Black made one payment to Phillips under the promissory note by wire transfer on August 2nd of 2013 -- in the amount of $100,000.
The lawsuit says Black has failed to make any additional payments.
Black currently owes a total of $8,236.44 in interest to Phillips, according to the lawsuit.
The lawsuit says interest is continuing to accumulate at the daily rate of $16.44 on the outstanding principal balance of $100,000. Black owes this remaining $100,000 in principal and any accrued interest by March 13th, 2014.
The lawsuit indicates Black is required to make quarterly interest payments to Phillips, but has failed to do so. Additionally, the lawsuit says Black has failed to give reasonable assurances as to how and when she will pay the remaining principal and interest amounts owed.
In addition to amounts owed by Black, the lawsuit claims the Milwaukee Wave also owes money to Phillips and his company, A&J Promotions.
The lawsuit says Phillips made a short-term loan to the Wave on December 2nd, 2013 in order to assist them in making payroll for the month. The lawsuit says Black, on behalf of the Wave, agreed to repay this loan.
According to the lawsuit, Black has refused to cause the Wave to repay the $10,000 loan and has failed to give reasonable assurances as to how and when the loan will be repaid.
The lawsuit says additional money is owed to Phillips and A&J Promotions from the Wave for purchases or merchandise from A&J made between December 4th of 2013 and January 17th of 2014.
Per the terms of the invoices sent from A&J Promotions to the Wave, payment was due 30 days from the invoice date, according to the lawsuit.
The lawsuit says promotional merchandise sold to the Wave by A&J Promotions was sold at Wave games between December 4th, 2013 and January 17th, 2014 -- paid for by customers at Wave games by credit card (via a "Square" account using a credit card reader and an iPad), and also via cash and check.
The lawsuit says that despite taking in "significant amounts" in the form of cash and checks, the Wave has failed to pay A&J for the promotional merchandise.
The lawsuit says from January 17th, 2014 to present, promotional merchandise from A&J continues to be sold and/or given away by the Wave.
The total outstanding balance for unpaid invoices due to A&J is $42,701.63.
The lawsuit brings six counts, including: