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Vizio’s China Outlook Impacted by Failed Venture

Vizio Inc. will have to reboot its efforts in China after its planned joint venture with LeEco never materialized.

The Irvine-based consumer electronics brand highlighted the failure and LeEco’s negligence regarding the partnership in two lawsuits filed this month against the Chinese conglomerate that seek $110 million in damages, legal fees and other relief.

The lawsuits contend LeEco made false financial statements and claims in the run-up to its proposed $2 billion buy of Vizio, which collapsed in April. Under the joint venture, Vizio would have sold branded TVs to the JV “at reasonably competitive rates” and the JV would have had exclusive rights to distribute them in the world’s most populous country, according to court documents.

LeEco also agreed to contribute noncash assets of $50 million in the venture, something it never did. Vizio’s efforts to negotiate the framework of the deal “were met with practical radio silence,” the lawsuit reads.

“They have not used any efforts, let alone reasonable efforts to form any sort of commercial joint venture distributorship agreement,” Vizio said in court documents.

“We don’t have anything to share at the moment,” a LeEco spokesperson told the Business Journal.

Vizio, which was co-founded in 2002 by William Wang, is the fifth-largest private company based in OC, with an estimated $3.5 billion in 2016 sales. The vast majority of its revenue is generated from its suite of smart TVs.

Med Device Venture

OC public relations veteran Kelly Reeves has partnered with Brea entrepreneur George Shih to launch a wearable medical device on indiegogo.com.

WRIXO is a cloud-based wristband that instantly delivers critical health information to a mobile device and allows first responders and emergency medical personnel to access data with just a tap of an NFC-enabled mobile device or via QR code. Users can clip it to a necklace, keychain or a service dog’s collar or vest.

The online campaign has raised more than $1,500 of its $35,000 goal.

Early adopters include Shih’s mother-in-law, who has Alzheimer’s disease, and the mother of a 14-year-old girl with dysautonomia, which causes fainting, blackouts, seizures, severe anxiety and dangerous drops in blood pressure.

“These are just two of the stories and personal accounts that drove me to take the risk and help bring WRIXO to market,” said Reeves, who launched Newport Beach-based nonprofit Paw Prints in the Sand Animal Rescue Inc. in 2013.

“I got involved in this capacity because I saw the need, mainly in working with service dogs and the people with disabilities that they serve.”

Peri Raises for Charger

Irvine startup Peri Inc. also turned to Indiegogo to release its second-generation iPhone charger and speaker case.

The Duo Slim, billed as the only iPhone case featuring a hi-fi speaker system and battery in a slim design, is available for early adopters at $39 for iPhone 7 owners and $49 for Iphone 7 Plus owners, prices available only to the first 150 buyers. The Duo Slim versions will cost $140 and $150 at retail.

The device features a full-range, three-watt speaker and passive radiator for enhanced bass; a high-resolution digital-to-analog converter for improved hi-fidelity audio; and a 3.5-millimeter headphone jack. It provides 80% extra power to the iPhone, or more than eight hours of audio feedback from the battery.

Peri, launched in 2014 by former Broadcom engineering head Mohammad Tabatabai and private equity veteran Michael Hsu, gained Apple certification for the product, which carries significant influence.

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