PIKE COUNTY, Ky. (WYMT) - Pike County investors filed a lawsuit against EnerBlu in Pike Circuit Court last week.
Pikeville EB Investors, the plaintiff, alleges EnerBlu made material misrepresentations to various members of the group in order to convince them to purchase stock in EnerBlu.
The lawsuit is against Michael Weber, CEO of EnerBlu, and Daniel Elliot, an EnerBlu employee.
State and local officials announced Dec. 15, 2017, that EnerBlu was building a high tech manufacturing plant in Pikeville.
The project would cost nearly $400 million dollars and create 875 full-time jobs.
At the announcement of the project, EnerBlu did not have the funds to construct the facility.
Local business owners and individuals created Pikeville EB Investors in February 2018 to help fund the project.
The lawsuit alleges Enerblu knew representations were false or erroneous for the Pikeville project.
Pikeville EB Investors purchased $1.2 million dollars in EnerBlu stock March 15, 2018, because of EnerBlu's misrepresentations, the lawsuit claims.
As a result of the misrepresentations, Pikeville EB Investors said it never learned about the failure of EnerBlu's ability to obtain the funding necessary to construct the manufacturing facility.
The lawsuit said the investors learned that EnerBlu suspended the project shortly before the announcement Feb. 5, 2019.
Pikeville EB Investors is suing EnerBlu for $1.2 million dollars, the full amount of its investment.