AlphaRed fell into disarray after it was reported CEO James Reed McCreary IV, of The Woodlands, Texas, and two of his businesses, including AlphaRed, were named in a lawsuit filed on Sept. 16 by Microsoft and the Washington State attorney general. The formal complaint can be seen here.
McCreary was accused of five separate violations of the Consumer Protection Act and/or Washington State's Computer Spyware Act in the lawsuit.
Calls to AlphaRed were not immediately returned, but one GFY.com thread claimed an employee of AlphaRed who wished to remain anonymous said, "AlphaRed has been accused of doing something shady but it is not the company who does that but some individuals within the company that hurt our reputation big time. Now those very same shady people are out of the company ... rest assured that everything will be positive from now on and we're reorganizing, and for sure we are going to get better."
The CWIE purchase includes the acquisition of AlphaRed's two privately owned datacenters in Houston, their 300 Gbps of Internet connectivity, as well as their connections in 16 carrier neutral facilities throughout the U.S.
"We are extremely pleased to announce this purchase and to welcome AlphaRed and their valued clients to the CWIE family of companies," Cadwell said Monday.
With the CWIE purchase, AlphaRed retains their long-term operational funding to service and maintain their large portfolio of clients, which consists of Web radio stations, online storage companies, file hosting websites and video media websites.
CWIE is an information technologies services and applications provider that develops, delivers and maintains innovative and marketable e-commerce, content protection, hosting, IP transit and CDN solutions.
AlphaRed has specialized in providing service to companies with bandwidth intensive Web applications and content distribution companies. Their hosting service offerings include web hosting, dedicated servers, virtual private servers, collocation services and dedicated Ethernet transit connections.