'Everything But The House' was hit with a lawsuit in January 2019. Here's what we know about what happened as a result of the lawsuit.
"This show is a vindication of who we are," Brian Graves, the co-founder of an Ohio-based e-commerce website, EBTH: Everything But The House explained in an interview about the new HGTV show.
The eponymous show draws more attention to the firm that revolutionized the online trading of rare treasures. But why does EBTH need to be vindicated? It all goes back to a lawsuit they were hit with back in 2019.
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On Jan. 3, 2019, Light EBTH LLC filed a lawsuit against EBTH.
Originally founded by Brian Graves and Jacquie Denny in 2007, EBTH quickly garnered popularity as an e-commerce website facilitating the sale of rare treasures and long-forgotten relics. Andy Nielsen, Jon Nielsen, and Mike Reynolds appear to have taken over the company in May 2012. The lawsuit filed in January 2019 concerned their activities.
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On Jan. 3, 2019, Delaware-based cooperation named Light EBTH LLC — not to be confused with EBTH (which stands for "Everything But The House)— filed a lawsuit alleging that EBTH and the people at the helm (Andy, Jon, and Mike) withheld necessary information about the financial state and projected growth of the company ahead of a larger-scale transaction. It's understood that Light EBTH LLC purchased a significant percentage of the shares in January 2017.
With the lawsuit, Light EBTH LLC alleged that they did so without having been made aware of the difficulties EBTH was facing at the time. Light EBTH LLC reportedly claimed that they received further information after the sale had closed.
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With the lawsuit, Light EBTH LLC reportedly claimed that EBTH overestimated the company's revenue performance. During the court case, it transpired that Andy Nielsen actually did disclose details about the financial affairs of the company ahead of the transaction. It's understood that the plaintiff ultimately failed to substantiate the claims. Fraudulent activity didn't take place, it was reportedly found.
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The defendants filed a motion asking the court to dismiss the claims made against them in April 2019.
It's understood that Andy, Jon, and Michael stepped down from their roles in the spring of 2018 — a year before the court case began. Scott Griffith, an investor and company founder who served as the chairman and CEO of Zipcar between 2003 and 2013, took over as CEO in the spring of 2018.
But it was Brian and Jacquie, the original co-founders of the company, who managed to save EBTH in the end. They regained control over the company in 2019.
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"It's like our darling Cinderella lost her shoes for a minute, we found them (on our site, ha), and now she's returning to the party!" Brian told the Cincinnati Enquirer. "We are excited at the new path EBTH is on, and to continue to work to get the train back on the tracks."
The original company founder Jacquie is a co-host of 'Everything But The House.'
Jacquie is joined by Good Morning America co-anchor Lara Spencer on the new HGTV show. Everything But The House charts their conversations with the owners of vintage goods and collectibles.
Catch new episodes of Everything But The House Fridays at 9 p.m. ET on HGTV.
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