CHANTILLY, Va. – Online Resources Corp. said this morning it plans to appeal Friday’s federal court verdict ordering it to pay $25 million to the former head of Internet Transactions Solutions, a Columbus, Ohio, provider of e-billing services it acquired in August 2007.
In issuing a verdict on behalf of Kent Stuckey, chairman and CEO of Internet Transactions, the U.S. District Court for the Southern District of Ohio ruled that ORCC breached its agreement to register stock issued as part of the $45 million deal and violated certain price protection provisions included in the cash and stock acquisition.
ORCC outbid Jack Henry & Associates and TransFirst to win the deal for Internet Transactions.
ORCC said this morning it disagrees with the judge’s verdict and plans to appeal the ruling to the U.S. Court of Appeals for the Sixth Circuit once a final judgment is entered.
The case revolves around the promise by ORCC to issue to stockholders of Internet Transactions ORCC shares that would be registered and publicly tradable. But ORCC had not told Stuckey that the Securities and Exchange Commission was reviewing the company’s financials at the time which prevented ORCC from issuing and registering the shares. In the interim, the financial crisis caused the value of ORCC shares to plummet in value.