Northern Data’s American branches have filed a motion to dismiss a lawsuit in the Central District Court of California. Former employees Joshua Porter and Gulsen Kama’s claims are contested on grounds of jurisdictional insufficiency and lack of detail.
Northern Data’s motion, as reported by crypto.news, asserts that the court lacks jurisdiction over the case, stating that the company’s U.S. branches, incorporated in Delaware and based in Virginia, do not fall under California’s general personal jurisdiction.
Additionally, the company argues that former employees Joshua Porter and Gulsen Kama did not provide sufficient specific details to support their fraud allegations. Northern Data characterizes the lawsuit as an attempt by the ex-employees to seek additional compensation, and challenges the lack of clarity regarding the alleged fraud perpetrators, timing, and location.
In early July, former executives of Northern Data alleged in a lawsuit that the Frankfurt-based company had misrepresented its financial strength to investors, regulators, and business partners. They claimed the company was also involved in potential tax evasion amounting to tens of millions of dollars.
Northern Data responded, refuting these allegations and stating they are vigorously contesting them to protect their reputation and business.
Meanwhile, Northern Data is reportedly considering an initial public offering (IPO) in the U.S. next year for its combined artificial intelligence (AI) cloud computing and data center businesses. The IPO could value the company between $10 billion and $16 billion.
