e.Digital Corporation (fka EDIG)

[Cassandra]

Free online access to recent lawsuit filings:

Note: I originally posted this on the AB board which has been down for several days, therefore I am reposting here:

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I found a site where I could upload the PDF files I downloaded from PACER and share them: http://www.box.net/files#0:f:6475160

You can download them to your own computer for easier future reference by using the "Save a Copy" feature in the PDF toolbar. The numbers you see in the file names are the docket numbers that you can match here: http://www.investorshub.com/boards/read_msg.asp?message_id=19283679

I think it's important for shareholders to read these for themselves rather than rely on LawyerLong / LegalEagle's claims that the risk to e.Digital is minimal and that he is so unconcerned he doesn't even follow the situation. I could not disagree more.

He falsely claims that even if digEcor wins an injunction, it would only be on the appearance of the device (Boyer's "napkin" drawings). As you can see, the injunction request is based upon ALL competition with digEcor. Boyer's affidavit is very informative.

As e.Digital states in its counterclaim (the text of which I also posted on iHub), they have been required by customers to indemnify them against such a situation, including refunds. An injunction could very well put e.Digital out of business. I think it is shameful for Bill to minimize the consequences.

He says he has over $500K invested with an average cost of over $1/share so is down about $400K. He has also said this is the only stock in his portfolio. He may not think it's in his best interest to explain the seriousness of the risk -- that the very life of the company is potentially at stake.

How would e.Digital raise the money for any substantial monetary judgment awarded to digEcor and/or to refund customers in the case of an injunction? The amount of money that can be raised by selling stock to Fusion is limited to 15 million shares at whatever price is in effect at that time. If digEcor prevails, e.Digital would need to make that public and the share price would likely plummet, reducing the amount that could be raised via Fusion. If the share price drops below 8 cents, Fusion will not buy any stock.

Post about how much can be raised by selling stock to Fusion: http://www.investorshub.com/boards/read_msg.asp?message_id=16998151

e.Digital also has no collateral to use for new loans. The $750,000 18% promissory note is secured by ALL of the tangible and intangible assets of the corporation, including IP and future payments for IP. This note is held by a fully owned subsidiary of Jerry Polis's public company, ASIT. (See exhibit A of the Security Agreement:
http://www.sec.gov/Archives/edgar/data/886328/000114420407014875/v069644_ex99-4.htm ).

FWIW, I downloaded these files from PACER at my own expense and share them freely for those who want facts rather than one person's (LL's) opinion. You can form your own opinion about the risk.

I sent them to TOMMEEK [as e-mail attachements] on Friday [5/as I had seen him asking LL about the new filings after I posted the docket report here. He was the only recipient until I sent to others on Sunday and yesterday and I told him to feel free to share with the shareholder e-mail lists.

Instead of being grateful, he characterized what I thought was generosity as a "weekend drive-by." I can only assume that he would rather not know what's really going on.