North Carolina-based Cavin’s Business Solutions is accused of submitting false documentation to show it had provided equipment to large customers participating in a marketing programme.
The OEM is hoping to sue the company for $2.2 million (€2.02 million) in monetary damages, along with treble damages and attorney’s fees, Triangle Business Journal reported. The lawsuit has been filed in the federal court for New York’s eastern district.
Cavin’s was part of the Canon Strategic Marketing Plan, which grants rewards to dealers who attract larger customers to acquire the OEM’s business equipment, such as printers and copiers, for a year or more. The OEM claims Cavin’s said it was placing equipment with customers participating in the programme when it was actually going to non-participating clients.
Canon allegedly sought an audit from Cavin’s in May, which would determine whether the documents submitted were false. The reseller agreed it owed $2.2 million for the remainder of the purchase price of business equipment from Canon, which the OEM says it has yet to pay. Cavin’s has requested additional time to respond to Canon’s complaint.