A startup company that moved its operations from California to Lincoln earlier this year is facing lawsuits from two investors.
Nelnet and Sipadan Capital both filed lawsuits last week in Lancaster County District Court against Ink Labs, which makes wireless printing stations.
According to its lawsuit, Lincoln-based Nelnet loaned the company $375,000 in March and again in May using convertible promissory notes, which allow the debt to be converted to equity in the company.
Sipadan Capital, a New York-based firm, loaned Ink Labs $876,000 in March and $775,000 in May, also using convertible promissory notes, according to the suit it filed.
According to the lawsuits, both companies at some point decided to seek repayment of the notes rather than convert them to equity, and Ink Labs has either been unwilling or unable to pay back the money.
Nelnet is seeking the $750,000 plus more than $20,000 in accrued interest. Sipadan is seeking the return of its $1.65 million plus nearly $59,000 in accrued interest.
Nelnet declined to comment about the lawsuit, and representatives from Ink Labs and Sipadan Capital could not be reached for comment.
Ink Labs, whose backers include Zappos.com CEO Tony Hsieh and Redbox founder Gregg Kaplan, announced in April that it had secured $6.65 million in seed funding, much of it from Nebraska-based investors, and was moving its operations to Lincoln.
The company picked Lincoln after doing a pilot test of its Smart Station digital printing kiosk at the University of Nebraska-Lincoln in August 2016.
Ink Labs offices are at Nebraska Innovation Campus.