American Elite Molding issued two apologies and paid Advanced Cable Ties $350,000 to settle lawsuits.

AEM’s statement on its company letterhead and signed by owner / president Robert Sires: “On May 11, 2018, American Elite Molding issued a media statement, which was emailed to the marketplace, concerning what AEM believed to be unfair labor practices at Advanced Cable Ties, one of its competitors. In that statement, AEM made misstatements of fact regarding ACT’s employment of undocumented workers, including the statement that the workers were brought in from other countries and paid under the table. AEM made similar incorrect statements to members of the press.”

“AEM’s statement were incorrect, as later evictee produced in a lawsuit between the parties has established. AEM unconditionally retreats the statements concerning allegedly undocumented workers at ACT. AEM regrets any damage these statements may have caused ACT. AEM and ACT have resolved their differences over this matter. We wish ACT nothing but success in the future.”

And second statement: “Advanced Cable Ties, Inc. sued its competitors, American Elite Molding, LLC and BuyCableTies.com, LLC in Federal Court alleging that from 2011 to present, Defendants imported various sizes of cable ties and accessories from China and Taiwan but improperly represented to their customers that all of their ties were manufactured in the USA at a facility in Florida. Defendants disputed the claim and the case has now been settled. Had the case gone to trial there was sufficient evidence to support a finding that prior to 2016, certain products that were not actually manufactured in the United States, were not clearly labeled as such on the website or in catalogue listings.”

The agreement between the competitors was signed by ACT president and co-founder Ken Tomasetti and Sires.

In 2016, ACT filed litigation in U.S. District Court as Advance Cable Ties, Inc. vs. American Elite Molding, LLC for violations of the Lanham Act, fraud and negligent misrepresentation.

The parties reached the agreement following “the exchange of substantial amounts of discovery.”

The agreement requires the parties not advertise or promote products including cable ties, clamps and mounting pads as “Made in the U.S.A.” unless manufactured in the U.S. Products sourced elsewhere will be accurately labeled with country of origin

News of the suits was published in the May 29, 2018, issue of Fastener Industry News.

At the time Tomasetti termed the AEM lawsuit as a “retaliatory claim” by a direct competitor.

ACT earlier had sued AEM – known then as Bay State Cable Ties, in U.S. Federal Court.

“as a result of Bay State’s misappropriation of ACT’s trade secrets,” Tomasetti told FIN.

The new lawsuit by AEM also alleges ACT made false representations in the market and the U.S. government.

American Elite Molding had alleged that around 60% of ACT’s workforce is undocumented and provided by Twin City Temporaries Inc., “which brings workers in from other countries and pays them under the table to avoid taxes and payroll costs,” according to American Elite.

AEM is seeking unspecified monetary damages for ACT’s alleged use of workers who are not eligible to work in the U.S. (See FIN, May 29, 2019)

Gardner, MA-based Advanced Cable Ties was founded in 1994 and its website proclaims the company as “A rock solid U.S. manufacturing company.” Web: AdvanceCableTies.com

Founded in 1998 as Bay State Cable Ties, the name was changed to American Elite Molding in 1996. Crestview, FL-based American Elite manufactures nylon cable ties. Web: AmericanEliteMolding.com