A California-based business owner is taking legal action against a Delaware corporation, accusing it of fraudulent practices and breach of contract. On December 26, 2024, Sam Sohal and Sohal Industries, Inc., formerly known as Test-O-Pac Industries, Inc., filed a complaint in the Superior Court of California, County of Santa Clara against Infinity Labs SD, Inc.
The lawsuit alleges that Infinity Labs engaged in deceptive practices to acquire Sohal's company under false pretenses. According to the complaint, Sam Sohal founded Test-O-Pac Industries in 1979 and developed it into a successful family-owned business specializing in packaging for the medical and pharmaceutical industries. In 2020, Sohal sold his company to Infinity Labs based on promises that included a $1.2 million purchase price and an additional $750,000 if he remained employed with them for three years. However, after four months into the contract, Infinity allegedly diverted Sohal's responsibilities away from sales and marketing to real estate tasks unrelated to his role. This diversion purportedly suppressed sales performance targets necessary for his compensation.
The complaint further accuses Infinity Labs of violating safe packing regulations intentionally to undermine Sohal's sales achievements. Additionally, on March 1, 2023, Infinity’s CEO allegedly promised Sohal payment for past earnings if he waived certain claims but failed to follow through despite Sohal fulfilling his contractual duties until December 16, 2023.
Sohal asserts that these actions constitute fraud and deceit through promissory fraud in inducement and misrepresentation of facts. The lawsuit also claims breaches of written contracts and covenants of good faith and fair dealing by Infinity Labs. Moreover, it accuses the corporation of engaging in unfair business practices under California Business & Professions Code §17200.
In response to these allegations, the plaintiffs seek compensatory damages exceeding jurisdictional limits alongside special damages determined at trial. They also request punitive damages due to what they describe as despicable conduct by Infinity Labs intended to oppress them financially without just cause or compensation for services rendered over two years.
Represented by attorney Jeffrey A. Berger from Berger Law Offices located at San Jose’s First Street Suite 210 office space; this case will be presided over under Case No:24CV455012.