Two Florida arms makers have been accused of breech of contract and divulging trade secrets by the company they partnered with for a Peruvian military deal.
According to the civil complaint, UWS and Aguieus teamed with Adams in early 2014 to develop custom military rifles needed to fill a multi-million dollar, multi-year contract with the Peruvian Ministry of Defense.
After establishing and signing initial formal agreements, Adams provided rifles for demonstrations as well as trade secrets, proprietary information and factory tours, the lawsuit says.
But after the contract was secured in January 2016, UWS “began taking steps to squeeze (Adams Arms) out of the final purchase contract, in violation of the (Letter of Intent).”
However, UWS had planned in December 2015 to take the entire project over but continue to use Adams’ designs, the lawsuit says. In June 2016, the company announced it had taken over the contract and manufacturing efforts entirely.
In a press release last month, the Peruvian defense ministry said it awarded UWS a $1.6 million contract to modernize its military weapons by setting up production lines in Peru.
In the lawsuit, Adams lists four counts of breech of formal agreements, two counts of divulging trade secrets, one count of unfair competition, and one count of unjust enrichment.