Legal Issues

by Mike Masnick



Applied Digital Misses Payment, Sues Lender

from the that-takes-guts dept

Applied Digital sure has a spotty history. Besides announcing their VeriChip implant chip received FDA approval when it did not - and then lying about the nature of the eventual approval (despite a specific warning from the FDA about what they could and could not say), they've now defaulted on their latest loan payment. To top that off, they've decided to sue IBM - one of the lenders they didn't pay. According to the loan agreement, Applied Digital is using some of their own stock as collateral. Now, since they missed the payment, IBM is looking to collect that collateral. Applied Digital is suing them, saying that they're trying to take control of the firm. Of course they're trying to take control of the firm. That's what they're allowed to do, based on the agreement that the management at Applied Digital signed in the first place.

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