Unnikrishnan v. IOT.nxt Americas USA, Inc.

CourtDistrict Court, E.D. Texas
DecidedJuly 28, 2025
Docket4:22-cv-00870
StatusUnknown

This text of Unnikrishnan v. IOT.nxt Americas USA, Inc. (Unnikrishnan v. IOT.nxt Americas USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unnikrishnan v. IOT.nxt Americas USA, Inc., (E.D. Tex. 2025).

Opinion

United States District Court EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

SUNIL UNNIKRISHNAN and JASON § BRADLEE, § § Plaintiffs, § v. § § Civil Action No.4:22-cv-870 IOT.NXT AMERICAS USA, INC. § Judge Mazzant IOT.NXT, B.V., VODACOM GROUP § LIMITED and VODAFONE GROUP, § PLC, § § Defendants. § MEMORANDUM OPINION AND ORDER Pending before the Court is Defendants Vodacom Group Limited and Vodafone Group, PLC’s Rule 12(b)(2) and 12(b)(6) Motions to Dismiss (Dkt. #15). Having considered the Motion and the relevant pleadings, the Court finds that the Motion should be GRANTED in part and DENIED in part. BACKGROUND This is an employment case involving allegedly unpaid compensation and equity interests. On October 12, 2022, Plaintiffs Unnikrishnan and Bradlee filed suit against Defendants IoT.nxt Americas USA, Inc. (“IoT USA”), IoT.nxt B.V. (“BV”), Vodacom Group Limited (“Vodacom”), and Vodafone Group, PLC (“Vodafone”) (collectively, “Defendants”) (See Dkt. #37-2 at p. 1).1

1 The Court notes that the parties use different names to refer to the same pleadings. For instance, Plaintiffs’ “Second Amended Complaint” (Dkt. #37-2) is described by Defendants as the “proposed Third Amended Complaint” (See Dkt. #39 at pp. 6–7). Similarly, Defendants’ briefing references Plaintiffs’ “Amended Complaint” where Plaintiffs identify it simply as their “Complaint” (compare Dkt. #6, with Dkt. #15 at p. 1). To avoid confusion, the Court will adopt Plaintiffs’ nomenclature and refer to the pleadings using the titles Plaintiffs assigned in their filings. Plaintiffs allege various causes of action against Defendants, including breach of contract, fraud, promissory estoppel, conversion, and a declaratory judgment (Dkt. #37-2 at pp. 7–8). The issue before the Court is two-fold: (1) whether it can exercise personal jurisdiction over Defendants

Vodacom and Vodafone, and (2) whether Plaintiff’s Second Amended Complaint pleads sufficient factual detail to survive dismissal under Rule 12(b)(6). Between October and December 2018, Defendant IoT USA’s representatives solicited Plaintiffs for employment (See Dkt. #37-2 at pp. 11–12, 16–17). As part of this recruitment, Plaintiffs received offer letters outlining compensation packages that included salary, incentives, and equity interests in BV and related entities (Dkt. #15 at pp. 11–12; see Dkt. #37-2 at pp. 11–12, 16–17).

Plaintiffs claim they accepted these offers and began employment with Defendant IoT USA—Bradlee in October 2018 and Unnikrishnan in December 2018 (Dkt. #15 at p. 12). According to Plaintiffs, in or around September or October 2019, Defendant Vodacom acquired a controlling interest in Defendant BV (Dkt. #15 at p. 21). Plaintiffs allege that, during this acquisition, Defendants Vodacom and Vodafone became aware of Plaintiffs’ employment terms, including their claimed equity interests in BV and IoT USA (Dkt. #15 at p. 21). Plaintiffs contend that Defendants Vodacom and Vodafone neglected to ensure that Defendant BV accounted for

Plaintiffs’ equity interests, thereby converting Plaintiffs’ property (Dkt. #22 at p. 8). Defendants dispute these assertions, arguing that Defendant Vodacom is a South African company with no presence in Texas or the United States and that Defendant Vodafone is a British company likewise lacking contacts with Texas (Dkt. #15 at pp. 8–9). Defendants Vodafone and Vodacom maintain that they never employed Plaintiffs, never owned property, conducted business, or purposefully directed any activities toward the United States, let alone Texas. In fact, Defendants Vodafone and Vodacom claim they were only tangentially connected to Plaintiffs through Defendant Vodacom’s acquisition of Defendant BV (Dkt. #15 at pp. 13–14, 21). On October 2, 2023, Defendants Vodacom and Vodafone moved to dismiss under Rule

12(b)(2) for lack of personal jurisdiction and under Rule 12(b)(6) for failure to state a claim (Dkt. #15). On November 6, 2023, Plaintiffs filed their Response, arguing that Defendants’ acquisition and alleged failure to honor their claimed equity rights supported personal jurisdiction and a claim for conversion (Dkt. #22). On December 11, 2023, Defendants Vodacom and Vodafone filed their Reply, contending that Plaintiffs’ filings offered only conclusory assertions and failed to adequately plead jurisdictional facts or the elements of conversion (Dkt. #29). The same day,

Defendants Vodacom and Vodafone filed a supplemental Motion to Dismiss maintaining that the Second Amended Complaint2 similarly could not support personal jurisdiction and failed to state a claim (Dkt. #26). On December 22, 2023, Plaintiffs filed their Amended Response, insisting that the Second Amended Complaint adequately pleaded facts supporting personal jurisdiction and viable claims against Defendants (Dkt. #35). On February 9, 2024, Plaintiff further filed a Supplemental Response (Dkt. #38). The Motion is now ripe for adjudication. LEGAL STANDARD

I. Rule 12(b)(2) Legal Standard Federal Rule of Civil Procedure 12(b)(2) requires a court to dismiss a claim if the court does not have personal jurisdiction over the defendant. FED. R. CIV. P. 12(b)(2). After a non-resident defendant files a motion to dismiss for lack of personal jurisdiction, it is the plaintiff’s burden to

2 Plaintiff’s Second Amended Complaint is the operative complaint (Dkt. #37-2). The Court will accordingly consider Defendants’ pending Motions to Dismiss as directed toward Plaintiffs’ Second Amended Complaint (See Dkt. #34 at pp. 1–2). establish that in personam jurisdiction exists. Bullion v. Gillespie, 895 F.2d 213, 216–17 (5th Cir. 1990) (citing WNS, Inc. v. Farrow, 884 F.2d 200, 203 (5th Cir. 1989)). To satisfy that burden, the party seeking to invoke the court’s jurisdiction must “present

sufficient facts as to make out only a prima facie case supporting jurisdiction,” if a court rules on a motion without an evidentiary hearing. Alpine View Co. v. Atlas Copco AB, 205 F.3d 208, 215 (5th Cir. 2000). When considering the motion to dismiss, “[a]llegations in [a] plaintiff’s complaint are taken as true except to the extent that they are contradicted by defendant’s affidavits.” Int’l Truck & Engine Corp. v. Quintana, 259 F. Supp. 2d 553, 557 (N.D. Tex. 2003) (citing Wyatt v. Kaplan, 686 F.2d 276, 282–83 n.13 (5th Cir. 1982)); accord Black v. Acme Mkts., Inc., 564 F.2d 681,

683 n.3 (5th Cir. 1977). Further, “[a]ny genuine, material conflicts between the facts established by the parties’ affidavits and other evidence are resolved in favor of plaintiff for the purposes of determining whether a prima facie case exists.” Id. (citing Jones v. Petty-Ray Geophysical Geosource, Inc., 954 F.2d 1061, 1067 (5th Cir. 1992)). However, if a court holds an evidentiary hearing, a plaintiff “must establish jurisdiction by a preponderance of the admissible evidence.” In re Chinese Manufactured Drywall Prods. Liab. Litig., 742 F.3d 576, 585 (5th Cir. 2014) (citing Walk Haydel & Assocs., Inc. v. Coastal Power Prod. Co., 517 F.3d 235, 241–42 (5th Cir. 2008)).

A court conducts a two-step inquiry when a defendant challenges personal jurisdiction. Ham v. La Cienega Music Co., 4 F.3d 413, 415 (5th Cir. 1993). First, absent a controlling federal statute regarding service of process, the court must determine whether the forum state’s long-arm statute confers personal jurisdiction over the defendant. Id. And second, the court establishes whether the exercise of jurisdiction is consistent with due process under the United States Constitution. Id. The Texas long-arm statute confers jurisdiction to the limits of due process under the Constitution. Command-Aire Corp. v. Ont. Mech. Sales and Serv. Inc., 963 F.2d 90, 93 (5th Cir. 1992).

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