Vertical Computer Systems Inc (fka VCSY)

[RLHMAN]

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FAQ has been updated.

2. Lawsuit vs Farias - Lakeshore Investments, LLC vs. Now Solutions, Inc., Vertical Computer Systems, Inc.

Our motion to file a Cross-Complaint was granted in December 2020. Under the amended cross-complaint we are seeking damages in excess of $5.5 million. On May 17, 2021, Lakeshore filed a motion to strike and demurrer to the amended cross-complaint. Vertical and NOW Solutions filed oppositions to these motions. We filed an amended cross-complaint on August 11, 2021. On September 7, 2021, Lakeshore filed a motion to strike portions of the amended cross-complaint and Lakeshore filed a demurrer to the amended cross-complaint. On September 24, 2021, Vertical and NOW Solutions filed oppositions to these motions. Lakeshore filed its reply briefs on September 30, 2021. On October 15, 2021, the court overruled Lakeshore’s demurrer with respect to the first cause of action (breach of contract) and the seventh cause of action (Common Count). While the court sustained Lakeshore’s demurrer with respect to the second, third, fourth, fifth and six causes of action without prejudice to Vertical and Now Solutions.

On October 18, 2021, Robert Farias filed a motion to strike portions of the amended cross-complaint and he filed a demurrer to the amended cross-complaint., On November 3, 2021, Vertical and Now Solutions filed oppositions to these motions. On November 17, 2021, the Court overruled the demurrer by Defendant Farias to the second cause of action (for Breach of Contract) and sustained the demurrer by Defendant Farias to the first, third, fourth, sixth, and eighth causes of action. Farias did not demur on the fifth cause of action (Breach of Fiduciary Duty), so that cause of action remains in the Vertical and Now’s cross-complaint. For the seventh cause of action (Common Count), the court overruled the demurrer to the extent this cause of action asserted a claim for Money Had and Received and sustained the demurrer to the extent this cause of action asserted a claim for Unjust Enrichment. The Court denied the motion to strike by Defendant Farias, as the claim for punitive damages may be predicated on the cause of action for Breach of Fiduciary Duty, and the allegations made by Vertical and Now Solutions were sufficient for purposes of the pleading stage.

Discovery is ongoing. We will provide limited updates on material developments on the status of this lawsuit that become publicly available in court.

While access to the filings in this case is open to the general public, you will need to sign up for an account and pay fees to access this case.

Los Angeles Superior Court- Case Portal Case #: 19STCV15381

What is the status of Ploinks®?
What is the status of NOW Solutions?
Why did you move offices?
What is the status of an annual shareholder meeting?
How to get in touch with our Shareholder Advisory Board?

http://vcsy.com/faq.html