Yota Devices declares bankruptcy following legal fights with display manufacturer

In an era where most smartphones all look and function mostly the same, it’s always a shame to see more interesting designs fall flat. Russian-based phone manufacturer Yota, best known for its line of Yota Phone devices with rear e-ink screens, has declared bankruptcy and all its assets will be liquidated.

As a report from iGuides explains, Hi-p Electronics (the manufacturer for the e-ink screens used in the Yota Phones) sued Yota Devices for $126 million, after Yota failed to meet the minimum number of component orders, following the company’s exit from the North American smartphone market. $17 million in compensation was provided to Hi-p by one of Yota’s main shareholders, and Hi-p dropped the suit.

However, Hi-p later filed another claim for $1 million, after Yota failed to pay the company that amount for components it purchased. The debt-ridden Yota Devices declared bankruptcy shortly afterwards.