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Table of Contents

Lead Story

Health care: When will payments stake its claim?

News

Industry Update

Hats in the ring for ETA awards

All clear for Intuit, ECHO merger

California chomps on gift card leftovers

Acquiring today, a shapshot

L60 at odds with Pipeline

EC interchange ruling: Merchants applaud, MC digs in

Swipe 'n shred, self-service fraud foiler

Features

AgenTalkSM:
Terence Van Horn

Triton layoffs changes, challenges

Tracy Kitten
ATMmarketplace.com

ISOMetrics:
ISOMetrics

Views

Hot, hotter contactless and mobile

David Talach
VeriFone

Education

Street SmartsSM:
Winter profit-land

Dee Karawadra
Impact PaySystem

Drill down to the fine print

Jeff Fortney
Clearant LLC

B2B and B2G: The road ahead

Aaron Bills
3Delta Systems Inc.

POS system power

Maxwell Sinovoi
United Bank Card Inc.

Interviewing for quality

Curt Hensley
CSH Consulting

PCI compliance: Don't forget the little guys

Ken Musante
Humboldt Merchant Services

Company Profile

Credit Cash

New Products

Eco-friendly two-sided receipt printing

2ST thermal receipt printer
NCR Corp.

Wireless terminal for mobile pros

Blue Bamboo H50 POS terminal
Blue Bamboo

Inspiration

Clean slate, new fate

Miscellaneous

POScript

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

January 14, 2008  •  Issue 08:01:01

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L60 at odds with Pipeline

Arizona holding company L60 Inc. filed a complaint against Pipeline Data Inc. in Maricopa County Superior Court in Phoenix, alleging the payment software provider failed to pay over $1.5 million as part of a merger agreement between Pipeline and Valadata Inc., a payment processor for the restaurant industry. L60, the sole shareholder of Valadata, entered a merger agreement with Quincy, Mass.-based Pipeline on July 10, 2006, in which Pipeline was to purchase Valadata and merge it with its wholly owned subsidiary Valadata Inc.

Pipeline agreed to pay L60 roughly $7 million in three installments: an initial amount of approximately $5.4 million at closing and then two subsequent installments - each in the amount of $782,631 - to be paid upon the first and second anniversaries of the closing date.

L60 claimed Pipeline paid the initial installment, but failed to pay the second portion when due.

According to the complaint filed in September 2007, L60 received a letter from Pipeline in August of that year stating Pipeline was no longer obligated to pay L60 further installments.

L60 is seeking the combined amount of the second and third installments it allegedly is owed - over $1.5 million - as well as interest accumulated on the unpaid amount after July 10, 2007.

Furthermore, as a result of the alleged breach of contract, L60 believes it is entitled to reclaim possession of the approximately 8,000 retail merchant accounts owned by Valadata at the time of the merger.

L60 also stated in the complaint that, in the 2006 merger agreement, Pipeline agreed to remit to L60 75% of the revenue received from two account portfolios after Pipeline had serviced those accounts for one year. L60 alleged Pipeline has not remitted that revenue.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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