MAINE, USA — Days after Avangrid was named in a $110M lawsuit filed by the cybersecurity company Security Limits Inc., Central Maine Power's parent company filed its own legal action Saturday.
In court documents sent to NEWS CENTER Maine, Avangrid filed a defamation lawsuit against Security Limits Inc. and its owner and CEO, Paulo Silva.
The lawsuit claims Silva is a, "disgruntled former Avangrid Networks subcontractor," and is putting himself in the middle of an ongoing merger process between Avangrid and a New Mexico power company.
Avangrid filed its lawsuit in New Mexico. Silva filed his lawsuit in New York.
Silva accused the energy company of, "bid-rigging and racketeering," in a scheme that he claimed made Avangrid, and its Spanish parent company Iberdrola, millions of dollars.
The lawsuit accuses Avangrid of purchasing equipment and storing it in warehouses in Maine and New York with no intention of doing anything with it. The court documents claim Avangrid was able to report those expenditures to public utility commissions as a reason to request rate hikes in the states where they deliver power.
Before Avangrid filed its lawsuit, the company denied the allegations on Friday, as reported here on NEWS CENTER Maine. A statement from the company read in part:
"In fact, the Company has previously reviewed unsubstantiated allegations made by Security Limits and sent a cease and desist letter to it."
On Saturday, Avangrid executives repeated their commitment to pursuing legal action against Silva and his company.
“Avangrid will vigorously defend itself against the meritless allegations and claims made by Security Limits," Senior Vice President and General Counsel R. Scott Mahone said in a release.
The 22-page court document accuses Silva of extortion which is a third-degree felony in New Mexico where the lawsuit was filed. The documents detail the history between Avangrid and Security Limits Inc., and point out that Silva still has affiliations to Avangrid on his and his company's social media pages.
Avangrid also published email exchanges between Silva and company executives showing Silva repeatedly asked the energy company if Security Limits Inc. would be awarded a contract from Avangrid. According to the emails, Silva bid on the contract two years ago and reached out this July.
The lawsuit continues and reads Silva spoke at multiple public hearings over the course of four making statements about Avangrid that the company said were false and defamatory.
Avangrid requested the court rules in favor of the company and against Silva and Security Limits Inc., and award compensatory damages that will be announced and proven at trial. They also request that they be awarded special and punitive damages at trial, as well as any further relief the court deems necessary.
This story will be updated.