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Interesting Case: Engage BDR, LLC v. Amobee, Inc., page-2

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04/01/22

09:59

Post #: 58622341
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Originally posted by Analytic: ↑

I refer you all to the link, as well as the first summary paragraph of the history of the case.

I have highlighted some important sections of the judgement. Was this case ever announced to the market? Basically, Engage owed Amobee USD $1.25 million, and, after listing in December 2017, had entered into a payment plan to repay this debt to Amobee, but was in "financial difficulty" in 2018 and 2019, and wasn't able to make its debt repayments on time. The case states that EN1 in 2018 was "financially unable" to make the repayments, and in 2019 EN1 was "still in financial distress".. In the end the entire debt was paid.

The reason of EN1 bringing the case was that "Amobee “t[ook] advantage” of Engage and “had knowledge of [Engage's] desperate financial condition at the time and intentionally, and with massive greed, maliciously forced [Engage] to actually pay to [Amobee] $452, 653.51 above the Principal Debt actually owed.”

In the end EN1 (rightly) lost the case. With costs awarded against it.

How may shareholders from 2018-19 knew the EN1 were in financial distress? Perhaps I missed the announcement.

Thoughts?

https://casetext.com/case/engage-bdr-llc-v-amobee-inc

07-15-2021
ENGAGE BDR, LLC, Plaintiff and Appellant, v. AMOBEE, INC., Defendant and Respondent.
.....
WILEY, J.
This case stems from a contract for digital advertising services between Engage BDR, LLC and Amobee, Inc. Engage would sell Amobee's advertising space to advertisers, earn a commission, and pay Amobee the remaining money it invoiced from advertisers.
When Engage failed to remit nearly $850, 000 in 2016, the parties entered a series of agreements for Engage to pay its balance. A pattern emerged. Engage would agree to pay more money in exchange for more time to pay. Engage would fail to pay and the parties would enter a new agreement. After two go-arounds, Amobee sued. The parties settled: Amobee gave Engage more time to pay in exchange for more money and the parties mutually released all claims. When Engage failed to pay under the settlement, the parties entered yet another agreement giving Engage more time to pay in exchange for more money.
In 2019, Engage satisfied the agreements, less a $30, 000 fee associated with the final agreement. Then Engage brought a complaint against Amobee with usury and contractual claims.
The court sustained two demurrers and entered judgment in Amobee's favor. Engage appealed. We affirm.

.....

DISPOSITION
The judgment is affirmed. Costs are awarded to Amobee.

Expand

The money printer was going Brrr Brrr to pay off EN1 so called "Legacy debts" in 2019.

Shareholders were completely in the dark to whom the money was owed to and for what.

The company never disclosed details regarding payments of creditor balances, just kept issuing shares for payment.

Disputes are still ongoing through the courts with other companies, one I keep my eye out for is the Monetize.com/Ad.com case scheduled for trial by the end of this year. By that time EN1 could very well be in the hands of administrators IMO.

I feel the delay in issuing shares following the most recent placement is due to lack investor support.

Expecting a discount to what the proposed issue price is supposed to be.

All in my opinion of course DYOR.

EN1 Price at posting: 0.3¢ Sentiment: Sell Disclosure: Not Held
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