The Sept. 17 motion filed by Internet Billing Company (iBill) to keep First Data Bank processing its online adult credit card transactions has been denied by the New York State Supreme Court, a lawyer for iBill confirmed to AVN Online late this morning.
Patrick L. Gibson, an attorney with the New York law firm Olshan, Grundman, Frome, Rosenzweig & Wolosky LLP, and one of the lawyers representing the IPSP in the case, stated over the phone that the motion was “denied on a procedural technicality,” but declined to comment on what exactly the technicality was or whether iBill would appeal the decision, or how the company would proceed.
However, insight into the impact of an unfavorable decision by the court on iBill’s motion was contained in the original motion, where it is stated, “iBill brings this action to save its business from immediate collapse.”
Ironically, as recently as Sept. 2, Wall Street analysts were advising consumers to seriously consider investing idirectly in iBill, based on its Aug. 31 acquisition by Care Concepts I, Inc., a Florida-based media and marketing holding company.
According to a Sept. 2 alert by analyst Wall Street Capital Funding LLC, “Aggressive investors and traders will certainly want to take a look at Care Concepts I, Inc. (AMEX:IBD) this morning! Recently, the company issued a press release announcing it has completed the previously announced acquisition of 100% of Media Billing, LLC and Internet Billing Company(r) (collectively "iBill") from Penthouse International!
“iBill provides online payment technologies enabling the purchase and sale of content and other downloadable services over the Internet. iBill was established in 1996 and has generated positive operating income since inception.”
The alert goes on to state, “In 2003, iBill averaged 1.2 million transactions per month and completed approximately $330.0 million in online purchases representing un-audited fee income of approximately $45.1 million.”
As a caveat to the deal, however, the alert by Capital Funding also states, “Pursuant to an amendment to the Agreement, Care Concepts has the option to rescind the transaction if iBill's audited financials statements, as compared to the unaudited financial statements delivered in connection with the transaction, show any material misrepresentation or if certain American Stock Exchange approvals are not obtained.”
AVN Online has placed several calls for comment to principals of iBill, Care Concepts, and First Data, but has received no reply as of this posting.