A new lawsuit alleges severe mismanagement and fiduciary breaches by senior officers of a failed technology company, leading to its downfall. The complaint was filed by Philip von Kahle in the Circuit Court of the 15th Judicial Circuit in Palm Beach County, Florida, on June 25, 2024, against two former executives of BridgeCR LLC d/b/a Bridge Connector.
BridgeCR LLC, formed in 2017 with ambitions to revolutionize digital health technology integration, raised tens of millions from investors under the leadership of former CEO David Wenger. However, according to the complaint, despite flashy presentations and PR efforts, the company had no proprietary technology or viable revenue sources and was hemorrhaging cash. Wenger allegedly looted the company for personal gain while senior officers Stuart Neiberg (CFO) and Joshua Douglas (CTO) stood by without intervening.
Neiberg and Douglas are accused of breaching their fiduciary duties by failing to report critical information about the company's financial health and technological shortcomings to the board. The plaintiff asserts that both officers had unique insights into the company's operations but neglected their responsibilities. Neiberg was responsible for tracking cash flow and financial planning but did not act on or report unsustainable expenses and unrealistic revenue projections. Douglas oversaw the development of Bridge's key software products "Destinations" and "Rosa," which were far from market-ready despite being heavily promoted.
The lawsuit details how Bridge's financial projections consistently fell short: projected revenues for 2018 were over $800,000 but actual revenues were only $22,008; for 2019, projections were over $8 million but actual revenues were $322,135; for 2020, projections exceeded $13 million but actual revenues before allegations surfaced were approximately $701,230. Additionally, Bridge's largest contract with RevenueWell was terminated with minimal revenue generated.
The situation escalated when an internal investigation revealed that Wenger had misrepresented revenue figures, concealed contract cancellations including that with RevenueWell, falsely reported product development status, incurred nearly $700,000 in unexplained personal expenses using company funds, awarded himself unauthorized bonuses and salary raises, hired his mother-in-law for a no-show job at an annual salary of $40,000 among other misconducts. This led to Wenger’s ousting by the board on October 22, 2020.
Plaintiff seeks monetary damages against Neiberg and Douglas for their roles in allowing Wenger’s misconduct to go unchecked. The relief sought includes judgments against both defendants in amounts to be determined at trial along with pre-judgment interest and litigation costs.
Representing the plaintiff is Jonathan S. Feldman from Phang & Feldman P.A., under Case Number: 50-2021-CA-003778-X XX X-MB.