HANOVER, NH – A large customer of ACT Electronics has filed suit, alleging the struggling EMS firm is demanding $250,000 to release product and other gear the customer claims to have paid for. 

In a lawsuit filed last week in U.S. District Court, Hypertherm Inc. says ACT is attempting to “extort” the contested monies. The dispute is costing Hypertherm a reported $47,000 per day and has forced the company to cease production on one of its lines.

ACT is facing financial issues, according to the lawsuit and other parties reached by Circuits Assembly. In recent weeks, ACT has announced mass layoffs at its Hudson, MA, and Corinth, MI, facilities.

The original December 2007 deal established payables were due 30 days after the product's receipt. Hypertherm reportedly purchased $60,000 to $70,000 worth of product a week from ACT, according to the New Hampshire Business Review.

Last month, ACT reportedly claimed “financial difficulties" and demanded Hypertherm pay in advance for its product builds. The suit alleges Hypertherm prepaid for $44,000 worth of product, yet ACT demanded an additional $250,000 for future builds before it would deliver the boards.

In response, Hypertherm demanded ACT release the paid-for product, plus stencils, test fixtures and tooling worth a reported $100,000. ACT thus far has refused, according to the suit. Hyperthem seeks an injunction.