Global Verge wins $43m ruling against Zer01

Last Thursday, a District Court judge in Nevada ordered Zer01, a company that promised unlimited voice and data cell phone service, to pay $43 million to marketing firm and former partner Global Verge. The judgment was based on breach of contract, long-term profit losses and tortuous interference with contractual relations, said lawyer Brian Hardy, who represents Global Verge. Despite the ruling, Hardy remained doubtful Global Verge will collect much, if any, of the $43 million.

The court still needs to sign the order and Zer01 will have 20 days to file an appeal. Hardy says Zer01's lawyer, however, Piilani, has stopped being active in the case, failing to return documents.

Last July, Zer01 stripped its website of any details regarding the offerings. Global Verge filed its lawsuit in December of last year, claiming that it loaned Zer01 more than $170,000 to help get the business running.

Zer01 had touted itself as revolutionizing the cellular business through a unique approach to voice that many had found questionable. It would have used data networks to handle voice but wouldn't have used traditional VoIP. Native apps would have played a part, including supposedly on the iPhone, but the process was never fully explained nor demonstrated in public. [via ComputerWorld]

By Electronista Staff