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Is This the End for Cartridge World North America?
Recent developments have revealed that Cartridge World North America is now under court-ordered receivership after failing to comply with a $4.3 million judgment stemming from a 2021 class-action lawsuit.The company’s CEO, who operates out of the New York office at #1 World Trade Center, has not made any public statements regarding the issue since the collection process began.
The decision, made by the United States District Court for the Northern District of Illinois, appoints Gregg Szilagyi as the receiver to recover assets on behalf of the plaintiff class.
This legal order highlights several issues of non-compliance by Cartridge World North America, including a failure to respond to citations regarding asset discovery and financial liabilities tied to its franchise operations. Szilagyi, an expert in federal equity receiverships, is responsible for tracing and liquidating Cartridge World North America’s assets to resolve the outstanding judgment.
Key aspects of the receivership involve taking control of Cartridge World North America’s accounts, property, and business records. Szilagyi is authorized to investigate financial transfers, issue subpoenas, and pursue claims to recover funds. The court order also grants the receiver the power to hire professionals, including legal counsel, to support the recovery process.
Attention will likely focus on Cartridge World North America’s financial transactions since 2016, including royalty payments owed by franchisees and property dealings. The receiver will also examine allegations of misconduct and has the authority to challenge third-party claims on Cartridge World North America’s assets.
This judgment originates from a 2016 civil lawsuit in Ohio, where plaintiffs successfully argued that Cartridge World North America had breached contracts and caused damages.
Efforts to enforce the ruling have faced multiple obstacles, requiring judicial intervention. With the receiver now in place, creditors are hoping for the recovery of funds that have remained unresolved for over three years.
This situation raises concerns about how this will impact the many franchises across North America and what the future holds for Cartridge World considering this setback.
Tonernews.com has reached out to Greg Carafello, President, and CEO of Cartridge World, for comment and will continue to provide updates as we await his response.
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