Applied Digital Solutions Settles Class Action Lawsuit.
PALM BEACH, Fla.--(BUSINESS WIRE)--March 10, 2003
Applied Digital Solutions, Inc. (Nasdaq: ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ), an advanced technology development company, announced today that it has reached a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to settle the pending and consolidated shareholder class action lawsuit class action lawsuit
A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax .
The settlement involved no admission of liability and will be entirely covered by proceeds from insurance. The settlement is subject to various conditions, including court approvals and approval of a special litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. committee of the Company's Board of Directors.
About Applied Digital Solutions, Inc.
On March 6, 2003, the Company filed a lawsuit against IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Credit LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control and IBM Corporation. According to the lawsuit, the causes of action include: tortious interference with business relationships; conspiracy to commit fraud/civil RICO RICO n. . ; fraud, breach of good faith and fair dealing; lender liability; and breach of the Florida Uniform Trade Secrets Protection Act.
IBM Credit has been the Company's lender since 1999. Under the terms of the IBM credit agreement and a letter sent by IBM Credit last week, IBM required payment of approximately $46.2 million by March 6, 2003. The Company did not make that payment. On March 7, 2003, the Company received a letter from IBM declaring the loan in default and indicating that IBM would exercise any and/or all of its remedies. If IBM were to do so, there would be doubt that the Company would be able to carry on business in the ordinary course. The lawsuit follows a good faith attempt by the Company to negotiate a satisfactory amendment to the credit agreement. The Company believes that its offers in those negotiations were not accepted, in large part, for the reasons set forth in the lawsuit.
Applied Digital Solutions is an advanced technology development company that focuses on a range of life-enhancing, personal safeguard technologies, early warning alert systems, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Technology Group, the Company specializes in security-related data collection, value-added data intelligence and complex data delivery systems for a wide variety of end users including commercial operations, government agencies and consumers. Applied Digital Solutions is the beneficial owner Beneficial Owner
A person who enjoys the benefits of ownership even though title is in another name.
For example, when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name, the true owner is the beneficial of a majority position in Digital Angel Corporation (AMEX AMEX
See: American Stock Exchange : DOC). For more information, visit the Company's website at http://www.adsx.com.
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.