CM-Focus LLC v. Conviso LLC

CourtDistrict Court, W.D. Virginia
DecidedJune 5, 2025
Docket5:24-cv-00009
StatusUnknown

This text of CM-Focus LLC v. Conviso LLC (CM-Focus LLC v. Conviso LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CM-Focus LLC v. Conviso LLC, (W.D. Va. 2025).

Opinion

FILED June 05, 2025 LAURA A. AUSTIN, CLERK BY: s/D. AUDIA IN THE UNITED STATES DISTRICT COURT oper POR THE WESTERN DISTRICT OF VIRGINIA HARRISONBURG DIVISION

CM-Focus LLC, ) ) Plaintiff, ) ) v. ) Civil Action No. 5:24-cv-00009 ) Conviso, Inc., ) ) Defendant. )

MEMORANDUM OPINION This matter is before the court on a motion to dismiss filed by Defendant Conviso, Inc. (‘Conviso”) (Dkt. 20). For the reasons outlined below, Conviso’s motion will be granted. I. Background A. Factual History The facts in this section are taken from Plaintiff CM-Pocus LLC’s (“CM-Focus’’) amended complaint and supporting exhibits and are accepted as true when resolving the motion to dismiss. See Ashcroft v. Igbal, 556 U.S. 662, 678 (2009); Goines v. Valley Cmty. Servs. Ba., 822 F.3d 159, 165-66 (4th Cir. 2016). In May 2016, Uday Malhan—Conviso’s President—contacted Girish Balakrishnan— CM-Focus’ CEO—concerning potential work for the federal government. (Am. Compl. 4 6 (Dkt. 17).) Conviso struggled to grow, so Malhan requested Balakrishnan’s help with breaking

into the federal government’s consulting market. (Id.) In particular, Malhan sought help from CM-Focus due to its expertise in both Salesforce and Servicenow software. (Id.) Later in 2016, the two reached an oral agreement as to how their companies could work

together to obtain consulting contracts from various federal agencies. (Id. ¶ 7.) Balakrishnan (and CM-Focus) agreed to assist Malhan (and Conviso) in the “acquisition and performance of federal consulting contracts” through “setting up meetings, delivering pitches to prime contractors and federal agencies, finding staff to work on federal projects, [and] providing Salesforce and other software expertise.”1 (Id.) In return, Malhan promised Balakrishnan (i) an equity interest in Conviso, in the event of a sale or transfer of the company or its assets, of

50% of the value of the sale or transfer “attributable to Conviso’s involvement in Salesforce/Servicenow as determined by a percentage of revenue associated with those software systems,” (ii) a 50% share of any future profits Conviso would obtain on federal- related contracts that were acquired or performed with the help of CM-Focus, or its resources, work, or processes, and (iii) compensation for hourly worked performed by Balakrishnan in helping Conviso perform its obligations under any federal contracts. (Id.) The parties each

agreed to these terms orally, intending the agreement to become immediately binding. (Id.) And they expected that they would likely put all the terms in writing at a later date. (Id.) The first work under the oral agreement began on May 28, 2017, when Malhan requested Balakrishnan fly to Washington, D.C. to create and pitch a presentation to the

1 The amended complaint explains that this lawsuit is between two corporate entities—CM-Focus LLC and Conviso, Inc. However, much of the amended complaint imputes actions to individual leaders of the respective entities—Malhan and Balakrishnan—and not the entities themselves. Nevertheless, the parties appear to agree that the actions of these individuals constitute the actions of the entity for purposes of the motion. The court will do the same and will refer to Malhan interchangeably with Conviso and Balakrishnan interchangeably with CM-Focus. - 2 - Centers for Medicare & Medicaid Services (“CMS”). (Id. ¶ 8.) The two worked together on the presentation and then delivered it to CMS personnel at the CMS office. (Id.) Following the presentation, Malhan created a Conviso email address for Balakrishnan for use while

following up with CMS. (Id. ¶ 9.) However, the pair did not receive any work from CMS from that pitch. (Id.) On June 20, 2017, Malhan began using CM-Focus’ past work for prestigious clients in presentations as a way to highlight Conviso’s capabilities with CM-Focus’ assistance. (Id. ¶ 10.) Malhan verbally reiterated the 50% profit sharing aspect of their 2016 oral agreement. (Id.) On September 22, 2017, Malhan and Balakrishnan met with representatives of Leidos

Holdings, Inc. (“Leidos”), to discuss a potential subcontracting opportunity under Leidos for work performed for the National Heart Lung and Blood Institute (“NHLBI”). (Id. ¶ 11.) Once again, Malhan reiterated the 50% split. (Id.) After multiple meetings over several days, Balakrishnan showcased the technological expertise of Conviso (with CM-Focus’ help). (Id. ¶ 12.) On October 11, 2017, Leidos awarded the subcontract to Conviso. (Id.) After sending the subcontract to Balakrishnan, Malhan requested that CM-Focus

discount its rate by $60 per hour and leave travel time unbilled to make the subcontract possible under typical federal budget restrictions. (Id. ¶ 13.) CM-Focus then stopped all work in the private sector and dedicated its resources to finding consultants who could be used in the Leidos project. (Id. ¶ 15.) By October 17, 2017, the Leidos project for NHLBI was well underway. (Id. ¶ 16.) Balakrishnan worked onsite at the Leidos offices and led meetings with personnel to keep the

projects on track and secure additional work. (Id.) Balakrishnan was careful to conserve - 3 - resources by doing things like driving instead of flying. (Id. ¶ 17.) Balakrishnan and CM-Focus exerted immense effort to help the Leidos project succeed. (Id. ¶ 18.) In particular, CM-Focus succeeded in obtaining multiple consultants for placement on the initial Leidos project. (Id.)

Conviso benefited from these placements, obtaining a profit of approximately $136,503.50. (Id.) Under their agreement, CM-Focus expected half of that amount—$68,251.75. (Id.) When a consultant eventually resigned in December 2017, Malhan shared relevant paystubs with Balakrishnan to be used in calculating the 50% split. (Id. ¶ 19.) Balakrishnan used the success on the initial Leidos project to obtain additional work for Conviso from Leidos. (Id. ¶ 20.)

At multiple times during their work together, Balakrishnan and Malhan referred to a “lawyer-drafted written agreement” which restated both parties’ responsibilities in the oral agreement. (Id. ¶ 21.) The document was never signed, but each time it was reviewed, Malhan confirmed that he agreed to all the terms contained within. (Id.) On March 26, 2018, the parties reviewed the lawyer-drafted written contract together during a screenshare call. (Id.) And on April 27, 2018, Malhan asked Balakrishnan to send the lawyer-drafted written contract

to him. (Id.) Initially, Malhan regularly paid Balakrishnan for travel and the hourly work he performed. (Id. ¶ 22.) But eventually, Malhan stopped paying him. (Id.) The total amount unpaid for Balakrishnan’s travel and hours worked was $19,869.00. (Id.) After failed attempts to have Malhan pay him in November 2018 and January 2019, Balakrishnan sent a demand for payment on April 17, 2019. (Id. ¶¶ 23–25.) Balakrishnan attempted further outreach to Malhan over LinkedIn on July 7, 2019, but Malhan dismissed those entreaties and made clear

- 4 - he was not going to pay the requested amount. (Id. ¶ 27.) Conviso continues to obtain government contracts by using resources it obtained from CM-Focus. (Id. ¶ 28.)

B. Procedural History

CM-Focus filed the original complaint, pro se, in this lawsuit against Conviso on February 26, 2024. (See Dkt. 1.) The complaint alleged that Conviso breached a number of terms of an oral agreement and thus owed CM-Focus damages. (See id.) After Conviso filed an initial motion to dismiss, (see Dkt. 4.), CM-Focus moved to amend its complaint, this time with the assistance of counsel, (see Dkt. 10). The court granted CM-Focus’s motion to amend its complaint. (Dkt.

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Bluebook (online)
CM-Focus LLC v. Conviso LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cm-focus-llc-v-conviso-llc-vawd-2025.