Welcome to the forums, wwag. (We don't like to get too specific here in these forums, so that's why I edited your post to remove the specifics).
What you're describing happens all the time. You're not the only one that scummy people like that are preying on. Do you own the trademark of your company name? If you do, then you can send those people a letter from your lawyer informing them that they're infringing upon your trademark and you will take further action against them unless they turn the domain name over to you. I emphasize that I'm not a lawyer, so you should see your attorney if sending a cease and desist letter is the right thing to do in this case. (That's typically what people do in these types of cases, and oftentimes it works very well).
If you're interested, you might want to check out the UDRP Domain Name Dispute policy, which should help you get the domain turned over to you.
Personally, I suggest that you do not give into their scummy tactics and be rather demanding that they turn over the domain name to you.
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