A lawsuit was filed against Spindle Inc. on May 22 by Michael Kelly, a shareholder and holder of senior debt of Spindle.
The lawsuit was filed in the District Court in Dallas County, claiming fraud against Jack Scott, interim CEO of Spindle.
In addition, the suit claimed breach of fiduciary duty against both Scott and Spindle in connection with the amended and restated senior unsecured convertible promissory note owned by Kelly, who assigned his interest and rights in the note to iOT Broadband LLC, where he is CEO.
Spindle said it will defend against the claims made by Kelly and plans to pursue counterclaims against the him, which may, if successful, result in an award of damages in favor of the company.
Kelly resigned as a board member of Spindle in March, citing a number of management concerns.
