Bankrupt Mobile Wagering Firm Sues Australia's eBet

Published Sunday, May 08, 2011 -

Sona Mobile Holdings Corp., through its subsidiaries, engages in the development, marketing, and sale of data application software for gaming and mobile devices. This firm which has been declared bankrupt has filed suit against the Australian company eBet Limited. Las Vegas nevada  mobile firm is suing for at least $1.2 million from eBet, alleging that it failed to fulfill promises of financing, and that a conflict of interest may be involved.

The Sona Mobile’s  company-developed software was termed during the bankruptcy litigation as, "real-time, multiplayer wagering on games that accommodate an unlimited number of players" on mobile devices connected to various networks.
Both the firm eBet and the Chief Executive Officer Anthony P. Toohey,are being sued by the administrators of Sona Mobile Holdings Corp.The details of the suit allege that eBet neglected to give Sona Holdings a 2.5 million dollar licensing fee and other services it had committed too. It was also  eBet’s right to designate the CEO of Sona Holdings, resulting in Toohey being CEO of both companies since late 2008, thus the conflict of interest charge.

Sona Mobile Holdings also put it to the courts that Toohey "failed to authorize and direct eBet's reimbursement of Sona's chargeback costs under the MSA and failed to authorize reimbursement to Sona for its employee costs resulting from eBet's refusal to assume and transition Sona's technical employees."
The breach of contract, breach of the implied covenant of good faith and fair dealing; and breach of fiduciary duty by Toohey, administrators of the liquidating company have what appears to be an excellent case against the eBet firm if they can prove there are grounds for reimbursement of their losses  because of plain conflict. Apparently the 2008 filing with the Securities and Exchange Commission, Sona Mobile Holdings said that as of Sept. 30, 2008, it had assets of $2 million against liabilities of $6.2 million and had accumulated $26.4 million in losses since 2003 as it developed software for gaming and mobile devices.





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