MOD, Lieberfarb Settle27 May, 2009 By: Chris Tribbey
Digital technology company MOD Systems and former consultant and board member Warren Lieberfarb have settled their suit over unpaid fees to Lieberfarb, the parties announced May 27. Terms of the settlement were not released.
“While this litigation was unfortunate, it has now been resolved,” Lieberfarb said. “I am happy to be putting this matter behind us.”
First filed in August 2008, the suit claimed that MOD had failed to pay Lieberfarb a 5% finder’s fee for investments of $20 million made by Toshiba into the company. Lieberfarb came on board as a consultant with MOD in 2006, and MOD agreed to pay him the 5% finder’s fee for introductions to investors into the company. In September 2008, Toshiba and NCR Corp. invested $35 million in MOD toward the creation of a digital delivery kiosk system where movies could be bought by consumers and downloaded on SD cards.
MOD filed a countersuit in January, accusing Lieberfarb of overstating his expertise and connections, and that he disclosed proprietary information to an investment firm. That countersuit accused Lieberfarb of planning to “obtain MOD Systems or sell MOD Systems’ confidential technology, business plan and other assets.”
MOD CEO and chairman Anthony Bay said he was pleased that the litigation was over, and that MOD would “continue to devote our resources and attention to the enhancement of our technology and business model.”
“Mr. Lieberfarb is a respected industry veteran and was a valued contributor to MOD Systems’ development,” he said.