Alternative Energy Southeast, Inc. has taken legal action against a payment processing company, alleging unauthorized withholding of funds critical to its operations. The complaint was filed by Alternative Energy Southeast, Inc. (AES) in the United States District Court for the Eastern District of New York on February 17, 2026, targeting CardConnect, LLC as the defendant.
The case revolves around AES's accusations that CardConnect wrongfully withheld over $138,000 from credit card transactions processed between February and August 2025. AES, a Georgia-based company specializing in solar power systems, claims it never consented to any agreement allowing such withholding. The complaint details how AES first engaged with CardConnect through exploratory discussions initiated by Paychex in April 2022. Despite not finalizing any agreements, AES found itself receiving notifications from CardConnect about joining their payment platform later that year.
According to the lawsuit, an ongoing business relationship developed where AES would submit customer credit card charges to CardConnect for processing and settlement. This arrangement functioned smoothly until February 2025 when CardConnect allegedly began withholding funds without explanation or legal basis. On July 29, 2025, upon discovering the issue, AES contacted CardConnect seeking clarification and documentation regarding the withheld transactions but received inadequate responses pointing towards a UCC filing by a law firm named Ainsworth Gorkin.
AES asserts that CardConnect’s actions breached its duties as a bailee for hire—failing to exercise reasonable care and remit transaction proceeds within a reasonable timeframe. The plaintiff argues this breach caused significant financial strain on its operations due to the loss of liquidity essential for payroll and other operational costs. Furthermore, AES claims it incurred additional expenses amounting to $23,147 in loan closing costs and missed out on an expansion opportunity worth over $80,000 due to this liquidity crisis.
In pursuit of justice, AES seeks actual damages totaling no less than $333,439 alongside attorney fees and pre-judgment interest. The lawsuit accuses CardConnect of conversion and negligence for unlawfully detaining funds crucial for AES’s business continuity.
Representing Alternative Energy Southeast is attorney Brian M. Laine from Alston & Bird LLP based in New York City. The case is presided over under Case ID: 2:26-cv-00944 in the Eastern District of New York court system.
Source: 226cv00944_Alternative_v_Energy_Southeast_v_Cardconnect_LLC_Complaint_Eastern_District_New_York.pdf