Wave Retorts: SDS 'Desperate' And 'Defeated'

Distributor SDS has sued Nortek and distributor Wave Electronics alleging bribery, conspiracy, antitrust violations and violations of state laws governing fair trade for sales of 2GIG products.

Now, Wave Electronics has responded to IPVM with their counsel, Shaun Clarke, a partner at Smyser, Kaplan & Veselka, L.L.P., making their objections very clear:

Regarding the lawsuit discussed in your July 23 article - SDS has made wholly unfounded and scurrilous allegations against Wave. However, under the rules of court Wave does not answer those allegations until there is a ruling on the motions to dismiss. That should occur late this year.

As Wave has stated in court - Wave has soundly defeated SDS in the marketplace, and SDS’s lawsuit is nothing more than a desperate attempt to malign Wave because SDS has failed to successfully compete. SDS’s claims have no basis in law or in fact. When the time comes to answer in court Wave will specifically deny SDS’s farcical allegations and will then move on to reveal the truth in court. I will forward you a copy of our answer.

This has become a controversial issue with distributors criticizing Nortek and Wave such as:

My 2gig sales are virtually non existent. When I complain to my Nortek rep. I get typical canned answers. We have gone so far as to remove 2gig products from our shelves in our West Coast facility. It has been impossible to compete with Wave. - David Pilchick, Brooklyn Low Voltage Supply

There was definetely preferential treatment given to Wave. Honestly, I still think there is. - Sean Nelson, Nelly Security 

However, what remains to be determined is whether Wave has any illegal advantages or is, simply, as they have responded, just beaten all those competitors.