Color-Web Launches Lawsuit Against Bank
NEW YORK—Color-Web Inc., a division of 1800Postcards.com, released details of ongoing litigation against its bank. Color-Web has counter-sued People’s Capital and Leasing, a unit of People’s United Financial, alleging fraud and breach of contract. The amount of the claim is $13.8 million.
Color-Web alleges that People’s Capital and Leasing reneged on a financial commitment to provide almost $4 million in funding for new technology—a state-of-the-art, custom-built printing press—in 2007. The bank provided a $200,000 deposit at that time, the suit alleges. Upon receiving this commitment, Color-Web changed its business operations to accommodate the new technology. The company contends the bank then withdrew the financing as other printing businesses began to suffer financially. Color-Web maintains the move was in violation of the agreement.
