SOURCE: Graffiti Entertainment, Inc

Graffiti Entertainment, Inc

April 03, 2014 16:01 ET

Graffiti Entertainment Files Multimillion Dollar Lawsuit Against Speed Commerce (Ticker: SPDC)

According to the Copy of the Lawsuit Filed by Graffiti Entertainment, Inc. Against Speed Commerce, the Defendant Failed to Pay Plaintiff Two Overdue Invoices Amounting to Over $700,000

PALO ALTO, CA--(Marketwired - Apr 3, 2014) - A Breach of Contract case was recently filed by Wyoming corporation Graffiti Entertainment Inc. against Speed Commerce, a company formerly known as Navarre Distribution Services, an entity that operates a substantial arm of its business in the state of Minnesota. The Breach of Contract case was initiated after the defendants failed to make good on two invoices sent by the plaintiff on July 11 and 25, 2011. Invoices amounting to $584,755.20 and $146,549.76 that were due on September 12 and 23, 2011 were either ignored or overlooked by the defendants, thus insuring Graffiti was unable to move forward with its approved public offering. The Board of Directors of Graffiti have estimated that the failure to pay invoices have caused damages to Graffiti in excess of $50 million.

"The lawsuit was filed against Speed Commerce and their retail distribution practices," said a board member of Graffiti. He went on to say, "It is particularly interesting that Speed Commerce is now trying to expedite the divestiture of that business. The board of Graffiti isn't sure how Speed Commerce is going to attempt the sale of that business unit with this multi-million dollar lawsuit now being on the books."

Graffiti Entertainment, Inc. was not able to pay employees, creditors, product manufacturers, licensors, and accounts receivable financing companies because of non-payment by Navarre. Navarre Corporation was under contract to handle the distribution and sale of retail game titles produced by Graffiti. The Board of Directors has decided to move forward with a "Breach of Contract" case as Speed Commerce refused to negotiate. The suit was filed because the Board of Directors of Graffiti believe that Navarre anticipated that delaying or holding any payment due to Graffiti would cripple its business and ultimately lead to its demise.

The lawsuit was filed in the Federal District Court of Hennein County in Minnesota through the lawyers for the plaintiff, namely Atty. Larry A. Frost and Atty. Andrew D. Winghart of Paladin Law PLLC and Winghart Law Group, respectively. A copy of the filing can be obtained from http://bit.ly/1m2m9aP

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