$10M lawsuit filed over Testori group

An American company has filed a lawsuit for more than $10 million against the former owners of a group of P.E.I. aerospace companies.

The lawsuit against the Testori group first came up in the provincial legislature in April.

The province held a $13 million loan on the companies. This spring, the government wrote off $8 million of that loan and sold the remaining $5 million and the Testori assets to P.E.I. Westside Funding, which is based in Delaware.

Westside has now officially filed the papers in court suing the former owners of Testori group, specifically naming Lindo Lapegna, for close to $10.3 million for the personal guarantees they made on the loans.

The defendants in P.E.I. have 20 days to respond to the suit. Those outside the country have 60 days.