A civil engineering firm and its owner have filed a lawsuit against the company’s former owner, alleging fraud and breach of contract in a transaction that transferred ownership of the business. On November 17, 2025, Narendra Kotti and Distinct Engineering Solutions, Inc. (DESI) filed a complaint in the United States District Court for the District of New Jersey against Ramnarayan Tirumala.
The plaintiffs claim that they were misled into purchasing DESI based on false representations made by Tirumala about the company’s financial health and organizational structure. According to the complaint, DESI was portrayed as having strong operations and finances, but after Kotti took control, he discovered significant issues with accounts receivable that were either uncollectable or improperly documented. The complaint alleges that these misrepresentations were intentional and aimed at inducing Kotti to purchase DESI for $7.5 million plus additional payments.
Kotti further claims that Tirumala breached their agreements by relocating to Texas shortly after the sale, despite assurances that he would remain in New Jersey to fulfill essential transition duties as per their Employment Agreement. This move allegedly left DESI unable to comply with certain licensing requirements due to the absence of a resident employee.
The plaintiffs are seeking rescission of the Stock Purchase Agreement and related contracts, restitution of all amounts paid, compensatory damages, attorney’s fees, and other relief deemed appropriate by the court. They argue that had they known the true state of affairs regarding DESI’s finances and operations, they would not have proceeded with the purchase.
Representing Kotti and DESI are attorneys from the Law Office of Alexander Sakin LLC and Gaw | Poe LLP. The case is being heard under Case No. 2:25-cv-17643 in front of judges yet to be named.
Source: 225cv17643_Kotti_v_Tirumala_Complaint_District_New_Jersey.pdf
