Soroof Trading Development Co Ltd of Riyadh, Saudi Arabia is suing fuel cell maker Plug Power Inc and others for not fulfilling terms of a 2000 distribution agreement.

Plug Power of Latham, New York indicated in a security filing that "there continues to be ongoing discussions between the parties" but that "it is too early to determine (i) that there is likely exposure to an adverse outcome and (ii) whether or not the probability of an adverse outcome is more than remote".

Soroof filed a demand for arbitration in July 2008 against GE Fuel Cell Systems LLC (GEFCS), which was dissolved in 2006. Earlier, Plug Power had a 40% membership interest in GEFCS and GE Microgen Inc (GEM) held a 60% interest. Industrial conglomerate General Electric Co was behind the GEFCS and GEM businesses. General Electric is not a party to the suit.

"In January 2010, Soroof requested, and GEM and Plug Power Inc agreed, that the arbitration proceeding be administratively closed pending final resolution of the matter in United States District Court, Southern District of New York," says Plug Power's 10-K filing with the US Securities and Exchange Commission.

Soroof filed a complaint with the court on 22 January naming, among others, Plug Power GEFCS and GEM as defendants and seeking as much as USD3 million.

Saudi Prince Bander Bin Abdullah Al Saud operates Soroof Trading.