UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported) March 2, 2010
PAYMENT
DATA SYSTEMS, INC.
(Exact
name of registrant as specified in its charter)
NEVADA
|
000-30152
|
98-0190072
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
of
incorporation)
|
File
Number)
|
Identification
No.)
|
12500
SAN PEDRO, SUITE 120, SAN ANTONIO, TEXAS
|
78216
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant’s
telephone number, including area code (210) 249-4100
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
8.01 OTHER EVENTS.
On
November 12, 2008, we commenced legal action against our former customers
Commerce Planet, Inc. and Consumer Loyalty Group, Inc., in the 285th
Judicial District Court of Bexar County, Texas. We alleged that they
breached the terms of our services agreement with them and sought to recover
economic damages and attorneys' fees. On January 22, 2009, the Court entered a
Default Judgment awarding us actual damages in the amount of $140,472 and
attorney’s fees in the amount of $4,000. We were also awarded all costs of Court
and pre-judgment and post-judgment interest as provided by law. On or about
January 1, 2009, Commerce Planet entered into an Asset Purchase Agreement with
Morlex, Inc. Pursuant to this agreement, Commerce Planet’s liabilities were
assigned to and/or assumed by Morlex, including the debt owed to us. On May 27,
2009, we commenced legal action against Morlex, Inc., in the 285th
Judicial District Court of Bexar County, Texas. On September 2, 2009, the
Court entered a Default Judgment awarding us actual damages in the amount of
$140,472 and attorney’s fees in the amount of $7,500. We were also awarded all
costs of Court and pre-judgment and post-judgment interest as provided by
law.
On March
2, 2010, we entered into a settlement agreement with Commerce Planet, Inc. Under
the terms of the settlement, Commerce Planet agreed to pay us $75,000 and issue
5,000,000 shares of free trading Commerce Planet common stock to us on or before
April 2, 2010. Additionally, both parties released all claims against each
other. On March 2, 2010, we received payment of $75,000 from Commerce Planet in
accordance with the terms of the settlement. We do not expect to incur any
additional expenses associated with this matter.
This
report contains forward-looking statements that involve risks and uncertainties.
We generally use words such as "believe," "may," "could," "will," "intend,"
"expect," "anticipate," "plan," and similar expressions to identify
forward-looking statements. You should not place undue
reliance on these forward-looking statements. Our actual results could differ
materially from those anticipated in the forward-looking statements for many
reasons including our ability to implement our business plan, our ability to
raise additional funds and manage our substantial debts, consumer acceptance of
our products, our ability to broaden our customer base, and other risks
described in our reports filed with the Securities and Exchange Commission from
time to time. Although we believe the expectations reflected in the
forward-looking statements are reasonable, they relate only to events as of the
date on which the statements are made, and our future results, levels of
activity, performance or achievements may not meet these expectations. We do not
intend to update any of the forward-looking statements after the date of this
document to conform these statements to actual results or to changes in our
expectations, except as required by law.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
|
|
Payment Data Systems,
Inc.
|
|
|
(Registrant)
|
Date March 8,
2010
|
|
|
|
|
|
|
|
/s/ Michael R. Long
|
|
|
(Signature)
|
|
|
Michael R. Long
|
|
|
Chief Executive Officer and Chief Financial
Officer
|