FT. LAUDERDALE, Fla. — SegPay has issued a statement in response to a lawsuit and motion filed by Emanon, Inc. against SegPay.
The suit, which was filed in Broward County, Fla., involves a 2008 management deal between the two companies and seeks payments of an outstanding note payable to Mannejor Ltd., a Cyprus-incorporated company.
"We are disappointed that Emanon (CommerceGate) has chosen to initiate litigation against SegPay and believe the lawsuit is without merit and we will vigorously defend our position," said Cathy Beardsley, president and CEO of SegPay.
Below are the pertinent facts in the matter according to SegPay:
• Three years ago SegPay signed a management agreement and option purchase agreement with Emanon (CommerceGate).
• SegPay was assured by Emanon that it had the financial resources to exercise its option and purchase the outstanding shares of SegPay by the deadline of June 30, 2011.
• When Emanon did not have the financial resources to complete the transaction on the agreed date, SegPay decided it was in the company’s and its clients’ best interest to terminate the relationship with Emanon in July.
• What remains is a simple business dispute that does not affect SegPay or its clients going forward.
"SegPay is a strong, growing company, focused on serving our clients,” Beardsley said. “Our management team, IT infrastructure and support staff is in place and our banking and card association relationships will not be disrupted. It’s business as usual — only now, the SegPay way.”
CommerceGate, as a result of the dispute, is no longer doing business with SegPay.
“As a direct consequence of this lawsuit and effective immediately, Emanon is no longer providing management services to SegPay,” said Bjorn Skarlen, director of Emanon.
CommerceGate, which offers U.S. and European processing, said it was not affected by the suit "and will continue the expansion in line with its ambition to bring constant improvement to payment processing in the high-risk market."