Williams F1 team being sued by former title sponsor ROKiT for $149m over alleged “fraudulent statements”
ROKiT claims Williams gave them assurance in 2019 that they would have a competitive car.
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Williams. Image via F1.
Ahead of the 2019 Formula 1 season, the Williams F1 team announced ROKiT, a telecommunications company, as their primary sponsor. The team signed a three-year contract with ROKiT. However, their partnership ended in May 2020. Williams announced the termination of the contract with immediate effect. Claire Williams, the team principal back then, did not specify the reasons but assured that the team had met all the contractual obligations.
During the COVID pandemic, there were disputes between the two parties. ROKiT insisted they did not receive the rights that were contractually due because of the cancellation of races. Meanwhile, Williams Racing sued them for withholding payments. The discussion over the unpaid fees went to the London Court of International Arbitration. Williams won the case. Now, ROKiT is suing Williams, claiming they were not aware of the fraudulent concealment of statements. According to their statements, Williams promised them a good car.
The new submissions by ROKit claim that “The arbitrator was not aware of the fraudulent concealment of statements of material facts by defendants that were not discovered until after the arbitration had concluded.” It further stated, “learned that the car was never capable of performing to the standards that defendants had guaranteed to the plaintiffs and that defendants were aware of and concealed this fact.”
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Williams Racing dismissed ROKiT’s claim calling it “spurious”
ROKiT also added that “defendants intentionally and fraudulently concealed the fact that Williams Engineering simply did not have enough money to develop the F1 car.” The claim states, “As a direct and proximate result of the fraudulent statements made by the defendants, plaintiffs have suffered significant financial loss and damage to their goodwill and business reputation.” ROKiT asked for compensation of “an amount over $149,528,550.”
Williams F1 team spoke to Motorsports.com about the accusations made by ROKiT. They stated they were aware of this “spurious claim”.The team reminded everyone that they successfully won an arbitration againt ROKiT in the UK, and successfully petitioned for the arbitral award to be confirmed by a federal court in the United States. Williams further added that they continue to trust the court regarding this matter. The team is confident that the opposition does not have a solid case.
However, the ROKiT boss Kendrick is certain he has a case. He told Motorsports.com that he did not want to do this. He thinks they have been wronged. Kendrick also explained that it was during the Covid time when the 2020 race season was canceled. That was the reason they did not pay Williams. Kendrick revealed that ROKiT offered 50% of the payment to Williams. However, the team refused and canceled the contract. As per his statement, Williams sued them for the whole amount.
The ROKiT boss further added that the F1 team promised them a competitive car but did not have enough money to make one. Kendrick revealed he has witnesses and former Williams employees who have given ROKiT important information. The telecommunications company has not been involved with F1 since then, after termination of the contract in 2020. However, they have a presence in motorsports through Formula E and British F4 championship. They are also involved with superbikes.
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Sugantha Meena
(493 Articles Published)