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12-07-2013, 08:44 AM #1Web Hosting Master
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VolumeDrive Sued For Breach of Fiduciary Duty
Data Sales Co., Inc. v. Volumedrive, Inc.
Filed: October 23, 2013 as 3:2013cv02626
Plaintiff: Data Sales Co., Inc.
Defendant: Volumedrive, Inc.
Cause Of Action: Diversity-Breach of Fiduciary Duty
http://dockets.justia.com/docket/pen...3cv02626/96153
I'll obtain the PDF's shortly from PACER and post them for our amusement. Thank god, it's about time someone stuck it to them!RACK911 Labs | Penetration Testing | https://www.RACK911Labs.ca
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12-07-2013, 08:50 AM #2Web Hosting Master
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Haha I used to live a mile from Data Sales Co., Inc.
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12-07-2013, 08:56 AM #3Retired Moderator
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I support the Human Rights Campaign!
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12-07-2013, 09:05 AM #4Disabled
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So are volumedrive being sued because they rented all the hardware via Finance from Data Sales Co.
And they don't allow Volumedrive to actually rent that hardware so they can make a profit ?0
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12-07-2013, 09:20 AM #5Disabled
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Nice find! I hope that the law catches up with these guys and they have a nice big settlement.
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12-07-2013, 10:21 AM #6Aspiring Evangelist
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12-07-2013, 10:38 AM #7Web Hosting Master
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So Data Sales Co would be the hardware leasing company BurstNET said was the actual owner of the hardware - and that only leased hardware to VD on condition that the servers were locked to BurstNET's locales.
And really, who didn't see that one coming?0
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12-07-2013, 12:53 PM #8Web Hosting Guru
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Very happy to see this. Thanks for sharing!
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12-07-2013, 01:12 PM #9Web Hosting Master
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12-07-2013, 01:45 PM #10WHT Addict
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The case was filed on 23rd Oct 2013, and they still running the business.
CFG Web Hosting Company, Haryana, IndiaPremium CDN Based cPanel Hosting & Dedicated ServersFollow Twitter:@cfghosting - www.cfg.co.in - +91.89881133790
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12-07-2013, 01:58 PM #11Web Hosting Guru
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Yes...why wouldn't they? I would suspect that they have not had any hearings, much less a ruling, at this point. I would be interested in seeing the documents, though. If they were obligated to keep the servers located at Burstnet as a condition of their contract, I don't see how they avoid penalty on this one. I would suggest that VolumeDrive customers keep good backups, just in case
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12-07-2013, 02:30 PM #12Web Hosting Master
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12-07-2013, 02:32 PM #13WHT Addict
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CFG Web Hosting Company, Haryana, IndiaPremium CDN Based cPanel Hosting & Dedicated ServersFollow Twitter:@cfghosting - www.cfg.co.in - +91.89881133790
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12-07-2013, 02:33 PM #14Web Hosting Master
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They lease all their servers and have not been paying for their rented/leased servers (they haven't been making their payments).
Thus, the company who sold/leased their servers is suing them because they aren't getting paid for the machines you all are using that VD is leasing from them.\
Unless VD makes the payments, its a pretty hard argument to win in court; once Data Sales Co. wins the lawsuit (IF VD even shows up at all, then its by default Data Sales Co. winning), then Data Sales can come get their machines by COURT / POLICE order immediately.
Good luck to everyone who has servers with VD, I hope you have backups, but I bet a lot of you don't... so here's a tip, start making them now.EasyDCIM.com - DataCenter Infrastructure Management - HELLO DEDICATED SERVER & COLO PROVIDERS! - Reach Me: chris@easydcim.com
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12-07-2013, 03:11 PM #15Disabled
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Patrick, We were starting to miss you! We were worried that you were starting to lose interest in our company.
We are not going to make any comments on any ongoing legal matter.
Is it not at all unusual for former business partners / competitors to abuse the legal system for frivolous, unsubstantiated claims. Large companies receive frivolous lawsuits all the time.
We are very confident about the outcome of this case, and there isn't any cause for concern on any services that we provide.0
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12-07-2013, 03:16 PM #16Newbie
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12-07-2013, 03:26 PM #17Newbie
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Ouch, I can't see it ending well. I guess they got themselves into this mess!
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12-07-2013, 03:32 PM #18Web Hosting Master
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12-07-2013, 03:37 PM #19Aspiring Evangelist
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So, since volumedrive is sitting here being all cheeky, I decided to spend the $5 on PACER to download the PDFs.
http://turtle.dereferenced.org/~kaniini/volumedrive/
In my opinion: they screwed Data Sales pretty hard. That said, who would lease equipment in the hosting industry when you can get business loans at prime+1% from many lenders?2
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12-07-2013, 04:01 PM #20Web Hosting Master
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12-07-2013, 04:08 PM #21Web Hosting Master
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Hmm.
14. As of the filing of the underlying lawsuit, VOLUMEDRIVE owes $116,118.48 to DATA SALES for the Leased Equipment
...
16. Additionally, pursuant to the Equipment Schedules and the Lease, VOLUMEDRIVE was not to remove the Leased Equipment from a property located at 422 Prescott Avenue, Scranton, Pennsylvania
17. The property located at 422 Prescott Avenue, Scranton, Pennsylvania (hereinafter the "BurstNet Building"), is owned by BurstNet Technologies, Inc. (hereinafter "BurstNet"), which is a company that provides co-location services to webhosting companies such as VOLUMEDRIVE.
18. Upon learning that VOLUMEDRIVE was illegally removing the Leased Equipment from the BurstNet Building, BurstNet changed the locks on the building to prevent further removal
19. With the assistance of BurstNet, DATA SALES has determined that VOLUMEDRIVE has misappropriated or taken 182 pieces of equipment, with a fair market value of $44,678.801
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12-07-2013, 04:14 PM #22Poooooonnyyy :*
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Where are the crap starters now?
All the ones that were sure that BurstNET was full of it?
GG.
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12-07-2013, 04:25 PM #23Problem Solver
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12-07-2013, 04:28 PM #24Aspiring Evangelist
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12-07-2013, 04:40 PM #25WHT Addict
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Just reading the documents, seems it got kicked into a federal court and BN/DS is tring to kick it back down. Federal judges have a higher reputation of digging though the cases better and finding out the true story.
Also this line sticks out the most
18. Upon learning that VOLUMEDRIVE was illegally removing the Leased Equipment from the BurstNet Building, BurstNet changed the locks on the building to prevent further removal.
I did not see anywhere in the paperwork that restricted them to keeping there equipment in a specific location.
But still just because someone filed a lawsuit does not mean everything they claim in court is 100% right. Yet still a good read. Maby someone will go to the hearing since they most likely are public?Black Fox Limited
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