Global Digital Solutions Inc (GDSI)

[Coreton]

Blue and Flight. Let’s look at this KPMG thing from just the facts we have in the filings. First. The original complaint by GDSI stipulates that they waved certain portions of the report. So no report was submitted in support of the claim. Rontan then held that out as being a breach of the SPA. The judge agreed and issues the dismissal but does so with prejudice( after arguments) and allows GDSI to amend the filing.

Now. If GDSI had failed to amend and meet the expectations of the judge. The matter would be over and done with. Obviously that’s not the case. The suit is moving forward. The amended filing addresses the KPMG issue and there is in fact a report from KPMG. This would seem to be what the judge was looking for otherwise (my speculation here) the judge would have upheld his Dismissal and there would be no depositions taking place.

IMHO there could be grounds under the SPA in regards to the KPMG report/audit that have not yet been addressed and the judge could find it to be a breach. But nothing we have seen in the filings would lend us to believe that to be the case at this point.

I believe that if the judge rules the KPMG report satisfies the SPA even tho it was not complete because GDSI accepted the report and it was for their sole benefit that GDSI will prevail.