IBJNews

Rushville broadband firm sued by companies it acquired

Back to TopE-mailPrintBookmark and Share

The honeymoon is over between Rushville-based Omnicity Corp., the fast-growing provider of wireless broadband service, and a handful of owners whose companies it purchased.

Founded in 2003, Omnicity has grown to provide wireless broadband service to roughly 12,000 rural subscribers in Indiana and Ohio, largely by acquiring about a dozen smaller competitors.

But at least three of those firms' owners have brought lawsuits against Omnicity, charging that it failed to pay them completely for the purchases. All told, the owners say they're owed more than $1.2 million.

“It’s been a pretty rocky road for me, because I’ve lost my company and my employment,” said Steve Narducci, who sold the assets of Alexandria-based NDWave LLC to Omnicity in February 2009.

He sued the company Sept. 29 in Rush Circuit Court, claiming Omnicity owes him $405,911, plus interest, in addition to roughly $6,500 in wages and reimbursements.

Omnicity brought Narducci on as its vice president of field services in June 2008, before the acquisition was complete, but terminated his employment Aug. 30 of this year, according to the complaint.

Narducci’s suit was preceded by another against Omnicity filed Sept. 16 in a Holmes County court in Ohio.

Kyle Yoder, owner of Digital Network Solutions Inc. in Berlin, Ohio, agreed to sell the assets of that company to Omnicity on March 31 for $750,000 in cash at closing. The deal also called for $500,000 to be paid in quarterly installments over four years, and Yoder was to receive $150,000 in company stock.

Prior to closing, Yoder agreed to Omnicity’s request to defer $50,000 of the $750,000 initial payment until later, according to the suit.

Omnicity gave him the $700,000, the complaint said, but it failed to pay the first installment of the $500,000 note, triggering a clause in the agreement that made the entire balance due immediately.

Yoder also alleges he is owed the $50,000 he agreed to defer, and the $150,000 in company stock, as well as damages to be determined by the court relating to his employment with Omnicity.

Yoder claims he is owed severance and vacation pay, in addition to two paychecks, after Omnicity fired him as general manager of its Berlin-based operation on July 12.
     
A third suit, filed in Rush Circuit Court on Sept. 1, makes similar default allegations. That complaint was brought by Peru, Ind.-based North Central Communications Inc., which Omnicity acquired in April 2009.

North Central owner Kevin Sexton charges in his suit that Omnicity owes him $159,903, plus interest, after the company defaulted on a payment in August.

Reached by phone, Omnicity CEO Greg Jarman maintained that disagreements are bound to arise when numerous acquisitions are made.

“In all cases, hundreds of thousands of dollars have been paid to [the plaintiffs],” he said. “The fact is, we have done a lot of acquisitions and we’re continuing to do that.”

Jarman added that Omnicity will “strongly defend” itself in court.

Jarman, Omnicity’s former chief operating officer, became CEO in June 2009. He replaced Dick Beltzhoover, a private investor in the company.

In its most recent annual report, the company lost said it $2.6 million on revenue of $1.6 million for the fiscal year ended July 31, 2009, compared with a loss of $979,861 on $1 million in revenue the previous fiscal year.

For the three months ended April 30, 2010, the company lost $743,000 on revenue of $837,000, according to the most recent quarterly report the company filed.

In August 2009, Omnicity announced its plans to create 100 jobs within the next three years by investing $2.5 million in wireless infrastructure and a new corporate headquarters.

The new headquarters, to be built in the North Rushville Industrial Park, will house the company’s call center, collections and distribution operations.

Omnicity said it planned to hire customer-service representatives, field-service personnel and managers to meet growing demand from recent acquisitions and new fiber-optic construction contracts.  

Indiana Economic Development Corp. offered Omnicity up to $25,000 in training grants and said it would provide Rushville officials with a $110,000 grant to assist in off-site infrastructure improvements needed for the project. The city of Rushville said it would provide additional property tax abatement.

Omnicity has added 30 of the 100 employees the company pledged to hire and has a total of 56 employees, Jarman said. Omnicity is renting space in Rushville but still plans to build a corporate headquarters, he said.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT