Shares of LQR House Inc. (NASDAQ:LQR) sank 24% on Thursday following news that the company has been named in a lawsuit requesting an asset freeze and court oversight of its operations.
Filed by Kingbird Ventures, LLC in Nevada’s Eighth Judicial District Court on July 11, the suit targets LQR House and its full board of directors. Allegations include breach of fiduciary duty, civil conspiracy, violations of state corporate law, and alter ego claims, among others.
According to LQR House, the complaint calls for a temporary restraining order and preliminary injunction to halt any transfer of company assets. It also seeks to bar the firm—along with CEO Sean Dollinger and entities allegedly under his control—from executing material business decisions. Additionally, the suit requests the appointment of a court-designated receiver to oversee company affairs.
In a statement, LQR House said it has not yet been formally served with the lawsuit or supporting legal documents. The company also claimed to have no record of Kingbird Ventures in its shareholder registry and said it was unfamiliar with the entity’s identity or its standing as a stakeholder.
LQR House emphasized it intends to challenge the allegations and described the filing as containing “numerous factual inaccuracies.” However, the company acknowledged that the final outcome of the litigation remains uncertain.
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