April 19, 2012 – ELLSWORTH, Maine — Live Lobster officials have said little about why money flow problems have prevented the company from operating since March 23, other than to blame TD Bank for freezing its checking accounts.
But two lawsuits filed against the company in federal court in Massachusetts shed more light on the situation. In separate complaints, a former Live Lobster employee and TD Bank claim the company has failed to live up to contractual agreements and owes them $235,000 and $3.4 million respectively.
The lawsuits raise the question of whether the Chelsea, Mass.-based firm, which operates in Maine as Lobster Web Co., will be able to resume operations in Phippsburg, Rockland, Spruce Head and Stonington, where it has buying stations, or in Gouldsboro, where last year it purchased the former Bumble Bee sardine cannery.
Read the complete story from The Bangor Daily News.