The city and county are suing an Australia-based animal health company that received startup funding from both local governments to begin operating in Lawrence.

The City of Lawrence and Douglas County filed a lawsuit against the company, Integrated Animal Health, in Douglas County District Court on Monday. The lawsuit alleges that the company breached its incentives contract, and the city and county are seeking to recoup one-third of a $100,000 grant provided to the company as part of the agreement. Integrated Animal Health announced it would move its global headquarters to Lawrence in 2015. The city and county subsequently approved incentives for the company, including the $100,000 grant, which was subject to a three-year performance agreement beginning in 2016. The city and county also agreed to pay the company’s rent in the Bioscience and Technology Business Center on the University of Kansas campus for three years, for an amount not to exceed $115,000 total, according to the incentives agreement. The Journal-World reported in April that the Kansas branch of the company appeared to have closed its Lawrence headquarters.

(Read more: LJWorld.com stories: Local news)