Since we certainly aren’t about to talk about how dope we think Tapout’s clothing is, a lot of our Tapout-related blogging ends up being devoted to stuff like lawsuits being leveled against them. There was the time they were almost sued for creating pendants out of founder Mask’s ashes, and then there were a few lawsuits over what a giant dickbag former exec Marc Kreiner was with employees. These didn’t mean Tapout was neccessarily a sketchy business – companies this size often have to fend off litigation with a rhinestone encrusted stick. But if this latest lawsuit is true…
Dan Diaz is the former owner of the Hitman Fight Gear clothing label, which was acquired by TapouT several years ago and subsequently saw its industry presence gradually decline in prominence. He has filed suit against Dan Caldwell (‘Punkass’), former TapouT executive Marc Kreiner and the new owners of Tapout, ABG, among others.
Diaz is asking for “not less than two million dollars ($2,000,000.00)” plus general damages “in an amount to be determined with precision at trial”, punitive damages “in an amount sufficient to deter and make an example of Defendants”, prejudgment interest, attorneys fees and “further relief as the court may deem just and proper.”
According to his case papers, filed with the court in Orange County, California in 2011, he claims he was induced to sell Hitman to the TapouT LLC corporation on the basis of representations made by Kreiner which subsequently turned out to be false.
Diaz believes that the buyout was really intended only to be a method of getting him to surrender his 10% interest in sales of TapouT gear, which stemmed from his work as a designer for the company over several years.
The claim states that “Diaz is now informed and believes that Defendants made the various representations… for the sole purpose of getting Diaz to relinquish his existing rights to a ten percent (10%) commission in the sale of TapouT gear through [their agreement]…Defendants made their fraudulent representations for the express purpose of defrauding Diaz out of his commission rights.”
Man, this Kreiner guy’s name keeps coming up in lawsuits even though he left the company two years ago. And just in case you’re thinking the two million bucks Diaz is going for is just one of those crazy unreasonable lawsuit numbers … well, it may be. But one of Tapout’s former sales staff managed to get 3.2 million bucks out of the company based on Kreiner’s crazy screamy ways. If you can get that much just for being yelled at, how much does a straight up financial screwjob net you?
Related legal Tapout shenanigans: How Orange County seized and sold Mask’s share of Tapout