IST North America $10M Lawsuit Alleges Corporate Sabotage and Covert Takeover Plot

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“Weaponized Partnership” and a $10 Million Arbitration Award

When the alleged scheme came to light, ISTNA initiated arbitration against IST Germany in 2023. During the proceedings, IST Germany—allegedly controlled by Trelleborg—dumped tens of thousands of documents, many authored by Trelleborg staff, which ISTNA claims exposed the “full scale” of the deception.

Just before the evidentiary hearing, IST Germany filed for insolvency in Germany in a last-ditch effort to stall the case. The tribunal refused to pause proceedings, ultimately ruling in June 2025 that IST Germany’s breach was “willful, malicious, and conducted with the assistance and at the behest of Trelleborg.”

The arbitrators awarded ISTNA nearly $10 million in damages, affirming that Trelleborg’s interference caused IST Germany to repudiate its contractual obligations.

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New Federal Case Targets Trelleborg Directly

ISTNA’s new lawsuit expands the battlefield, seeking additional damages, attorneys’ fees, and a jury trial against Trelleborg and its executives. The company accuses Trelleborg of engaging in deliberate deceit to capture its customers, technology, and goodwill — a move that ISTNA says drove it out of business entirely.

“Even as they smiled across a dinner table in Piermont, New York, assuring Mr. Camali that his company’s future was secure, they were finalizing documents that would gut IST Germany,” the complaint says.