US television maker Vizio sued LeEco in California over unpaid termination fees following a failed merger, adding to pressure on the cash-strapped Chinese tech giant, Caixin reports. Vizio filed two separate suits Tuesday in US federal court and in a state district court in California, accusing LeEco of defaulting on an agreement. Vizio said LeEco paid $40 million of a $100 million termination fee due under LeEco’s July 2016 accord to acquire Vizio for $2 billion. LeEco dropped the deal in April citing “regulatory headwinds.” But Vizio said in its court filing that LeEco used the announcement of the proposed merger with Vizio to “gain access to Vizio’s large corporate customers and key decision makers thereat for their own purposes” and “create a false widespread public impression of their own financial health.” LeEco has been facing a cash crunch since last fall after a spending binge in an array of new businesses including smartphones, TVs and electric vehicles.
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