mmm-hmm. more bad news regarding Infinium Labs. didn't see this coming...

if people aren't convinced by now that the owner of Infinium is just a computer-industry con artist, just wait until he gets sued a few more times.

Infinium Labs to settle out of court with former employee? - 16/04/2004

According to heraldtribune.com, Infinium Labs are to settle out of court with a former employee Terry Nagy over a stock related dispute.

Terry Nagy has worked in the industry as far back as 1987, with credited to titles such as Duke Nukem, Serious Sam, Blair Witch V1, and Balls of Steel.

When working long-distance with an aim of get game developers onboard the Phantom console project Nagy alleged that Infinium used him and his knowledge of the computer games industry was promisising 110,000 pre-split shares in return. The lawsuit named defendants as Infinium, and its cofounders Timothy M. Roberts and Robert Shambro.

Nagy’s attorney Michael Hurst has stated that there was no written contract, but he said there are emails to backup an oral contract. He says he had the title of executive vice president by June 2003, before March of the same year when his mobile phone and email were cut off.

"It’s not like the guy called up and said, 'What happened to the stock?'" stated Kevin Bachus, Infinium’s President, said they were surprised by the lawsuit. “Now we are discussing it to see if there is a resolution, and I would expect to see that happen within a week".

Recently Infinium Labs issued a public warning to the website [H]ardOCP to remove their article “Behind the Infinium Phantom Console” or they would sue. [H]ardOCP replied by first correcting a number of minor errors in the article. When this was not enough, [H]ardOCP then filed a declaratory judgment lawsuit against Infinium Labs to “establish its position that there was nothing improper, untruthful or defamatory” about the article.

The Phantom console to be unveiled next month at this year’s E3 in LA.
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Infinium Labs Facing Another Law Suit - Thursday April 22, 2004

The problems facing Infinium Labs, creators of the Phantom video game console, seem to be growing at an alarming rate as yet another law suit has been filed against them. The trend that is beginning to surface from these actions against the company suggests that Infinium Labs acquired insider gaming industry expertise and knowledge from companies and individuals and now may be having difficulty on delivering the appropriate compensation for those services.

Digital Interactive Systems, Inc. (DiStream), and Royal O'Brien, its Chairman and Founder, yesterday filed suit against Infinium Labs and its two founders in the Circuit Court of the Fourth Judicial Circuit in and for Duval County, Florida. The complaint alleges material breaches of a series of agreements relating to Infinium's acquisition of DiStream's proprietary, confidential information, technology and know-how.

The agreements negotiated between DiStream, Mr. O'Brien and Infinium authorized Infinium to utilize DiStream technology - including two modules of its DiStream Server, DiEMS (Enterprise Management System) and DiSMS (Services Management System) and its DiCRYPT, AES standard encryption engine used to protect content during distribution - to develop, launch and protect Infinium's gaming network. After the parties executed the agreements, Infinium trumpeted the arrangement, asserting in a November 4, 2003 news release that with DiStream's technology Infinium has taken a big step toward its goal of offering consumers the largest selection of game software.

DiStream and Mr. O'Brien further allege that by promising them significant ownership interests in Infinium, the defendants induced them to provide Infinium with technological know-how essential to the planned 2004 launch of its gaming network. On the strength of this technological know-how and the substantial contribution of DiStream and Mr. O'Brien to Infinium, the lawsuit alleges, the defendants procured essential financing and began to execute on Infinium's business plan.

In February, 2004, without warning, Infinium terminated its relationship with both DiStream and Mr. O'Brien. In clear violation of its agreements with DiStream and Mr. O'Brien, Infinium refused to tender to DiStream and Mr. O'Brien either the shares to which each was entitled for their efforts on Infinium's behalf, or promised cash consideration.

DiStream also seeks injunctive relief to prevent Infinium from employing any trade secrets, relating to their agreement, that Infinium received from DiStream for any purpose, including procuring financing or launching its gaming network.
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