Snap One vs Josh.ai Lawsuit Continues
Strata-gee has learned that the U.S. District Court in the District of Utah has granted a Joint Motion to Dismiss all claims between Snap One, LLC (now part of Resideo) and AVA, Inc. The motion is the result of a negotiated settlement between the parties. This solves one-half of a lawsuit originally filed in August 2023 between Snap One, LLC (plaintiff) versus AVA, Inc. (defendant), and Josh.ai, Inc. (defendant).
Josh.ai is not part of this settlement so that case carries on.
Learn more about the settlement between Snap One and AVA
District Judge Ann Marie McIff Allen granted this motion to dismiss on December 24, 2024, a Christmas present opened by the parties on Christmas Eve. Two things of interest to note about this development: 1) The motion was for dismissal “with prejudice” which means the matter is disposed of with finality, it cannot be revived at any time in the future; 2) It is the result of a “confidential settlement” between the parties which means we have no idea of the terms of the agreement that caused both sides to walk away.
Settlement Negotiated After Snap One Acquired by Resideo
It is also interesting to note that the parties negotiated this settlement after Snap One was acquired by Resideo back in April 2024. Not only was that fully eight months into the back-and-forth legal haranguing, but many of the Snap One people involved in moving forward in this action are no longer with the company.
From the Judge’s order…
Good cause exists to grant the Joint Motion. Snap One and AVA have resolved the dispute between them and executed a confidential settlement agreement regarding the same (the “Settlement Agreement”). Defendant Josh.ai, Inc. (“Josh.ai”) is not a party to the Settlement Agreement, and the claims and defenses between Snap One and Josh.ai in this action remain pending and are not impacted by this Motion or the Settlement Agreement. Thus, Snap One and AVA jointly request that the Court grant this Joint Motion and (1) dismiss with prejudice all claims, defenses, and counterclaims between Snap One and AVA and (2) dismiss AVA as a party to this action, with each party to bear its own costs, expenses, and attorney fees.
From Joint Motion to Dismiss Snap On’s Claims Against AVA and AA’s Counterclaims Against Snap One
AVA Acknowledges Case is Settled
I spoke with Ted Haeger at AVA about this new development. Haeger confirmed that a settlement had been reached and that all claims between the parties were dismissed. However, he emphasized that the settlement was confidential and he was unable to share any details about the elements of that agreement with me.
Haeger was able to share that in settling this matter, there was no admission of fault or guilt by either party. He also confirmed that as part of this agreement, both sides agreed to bear their own expenses and attorney’s fees.
Sounds Pretty Mutual, But Due to Confidentiality Clause, AVA Would Not Confirm
This all sounds very mutual, rather than a one winner-takes-all settlement. I’m speculating here, but it could be due to the fact that in AVA’s response to the original lawsuit, they lodged several counterclaims against Snap One. It’s hard to say how the case was proceeding and who was “winning” – and, as I always remind readers – I am NOT an attorney. But it seems to me that, in a way, both sides potentially had something to gain by walking away.
One other thing that Haeger told me was that dealers can rest assured that there are no planned changes to the lineup – either hardware or software – at this time. [Ted G – And, apparently, this may also be due to this settlement.] That’s good news for dealers as the company continues to ramp up its partnership with custom integrators around the country.
I reached out to Snap One for comment but did not hear back from them prior to posting this article.
Josh.ai’s CEO Alex Capecelatro Comments on Snap One/AVA Settlement
However, I did speak with Alex Capecelatro of Josh.ai. Although both AVA and Josh.ai were named in this lawsuit, each was pursuing their case separately from the other. So that means different attornies, different defense strategies, different counterclaim strategies, and so on. They do not coordinate and sometimes ask me about the other.
As I noted above, Josh.ai was not a party to this confidential settlement agreement. However, Capecelatro acknowledged that he was aware of the fact that Snap One and AVA had reached a settlement. I asked him directly what the Snap One/AVA settlement means for Josh.ai. “Well it doesn’t necessarily mean anything,” he responded.
There are Common and Unique Elements in Charges Against Defendants
Because the lawsuit had some common elements between the defendants, and some unique items for each defendant, Capecelatro said it was not entirely clear what the impact of the settlement would be on his case. However, he suggested it may be possible to get the judge to review the same claims Snap One lodged against Josh.ai that they then agreed to dismiss with AVA.
This, of course, all needs to be sorted out, he said. Capecelatro tells me that Josh.ai lawyers are extensively reviewing the matter now and considering what change – if any – there will be on its litigation with Snap One. For now, “We [Josh.ai and Snap One] are still going back and forth on lots of different things
Josh.ai, ‘…This is a Good Indication’
Capecelatro summed up with this thought, “So, in general, it shows us an indication that Snap’s looking to get this resolved. If they settled there, obviously there’s interest in general in not continuing to fight. I feel like this is a good indication that things are coming to a resolution.”
What was this case all about? See my original extensive reporting on the lawsuit filed by Snap One back in August 2023.
See more on Snap One by visiting snapone.com.
Learn all about AVA at ava.com.
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