A Battle Fought to the Finish Results in an $18 Million Judgment
Stuckey v. Online Resources
Corporation. United States District Court for the Southern District of
Ohio, Case No. 2:08-CV-1188.
In 1999, several young tech-savvy entrepreneurs came together to build a new business that provided specialized electronic payment services to the accounts receivable management and utilities industries. By 2006, that business, Internet Transaction Solutions, Inc. (“ITS”), had become an award-winning industry leader and the owners decided to sell. The buyer was a publicly traded corporation called Online Resources Corporation, Inc. (ORC). ORC breached the purchase contract by not timely registering ORC stock that it issued as part of the purchase price to the ITS shareholders and Kent Stuckey, the president of ITS, sued ORC on behalf of ITS shareholders in federal court in Columbus.
ORC, represented by international law firm Greenberg Traurig, fought every step of the way. ORC filed two motions to dismiss the lawsuit, both of which were overruled. ORC also moved for summary judgment, which was also overruled. The case was ultimately tried in federal court throughout approximately two weeks to United States District Judge Algenon L. Marbley. Following extensive post-trial briefs, Judge Marbley found for Stuckey, awarding $18.1 million in damages- ORC appealed. While the appeal was pending, Stuckey (on behalf of himself and the ITS shareholders) settled for $17.9 million. Mr. Stuckey’s thoughts about the case and its outcome can be seen under Endorsements.