Dot1web sues bank for account irregularities

INCLINE VILLAGE - Incline Village-based Dot1web announced today that it has filed a lawsuit against Nevada Security Bank.

Dot1web is alleging the bank is responsible for bounced payroll checks and other account irregularities related to the technology company's account, which adversely affected its employees and business in December 2002 and led to the company's collapse. The suit was filed Nov. 24 in Washoe District Court.

The suit lists 11 causes of action against Nevada Security Bank, including breach of contract, negligence and violation of banking laws.

The suit lists alleged damages including but not limited to financing charges, imposition of receivership, penalties, loss of value, lost revenues and market share, devaluation of stock, loss of workforce in place, loss of goodwill, loss of credit and prospective business, stigma of criminal prosecution, mental pain, suffering, anguish and stress/anger and humiliation, costs of attorneys, experts, and costs of suit.

"We feel we need to hold the bank accountable for their actions, which we allege kept around 100 employees from getting paid and putting a tremendous hardship on them and their families at Christmas time. In addition, the bank held over $130,000 in available company funds which hurt the company as it was expanding and raising additional funds," said Bob DeMaio, president and CEO of Dot1web Inc.

DeMaio is a plaintiff in the suit alleging he lost more than $80 million dollars in stock valuation and damage to his reputation.