Einstein Computer, a wholly owned subsidiary of the Legal Club of America, said Friday it has filed suit against Gateway in federal court in California. The suit claims damages of more than $200 million and accuses Gateway of breach of contract and fraud. Fort Lauderdale, Fla.-based Einstein alleges that Gateway wrongly refused to deliver computers that Einstein sold through its workplace-marketing network. According to Einstein, the company has contracts with several hundred corporations that allow it to sell brand-name computers to employees.
A Gateway representative said it is the company's policy not to comment on litigation.