|By Business Wire||
|July 26, 2013 12:28 PM EDT||
Judge Mark R. Hornak issued two important post-trial rulings from the bench in a patent infringement lawsuit against Realauction.com, LLC. First, the judge ordered Realauction to post a $4.3 million bond to secure an $8.1 million jury award to Grant Street Group. Second, he denied Realauction's motion to seal portions of the trial transcript pertaining to the identity of Realauction's majority owner.
Realauction's attorney, David Brafman of Akerman Senterfitt, relying upon sworn statements by Realauction’s Chief Financial Officer, argued at the hearing that a bonding requirement in excess of $1.5 million would put Realauction out of business. Judge Hornak rejected Realauction's arguments and paraphrased a recent opinion by U.S. Supreme Court Justice Antonin Scalia noting that the trial testimony of Realauction's CEO, Lloyd McClendon, with respect to the company's financial records "strained the credulity of the credulous."
As a consequence of the judgment, Realauction must post a $4.3 million bond by August 1, 2013 or face the prospect of having its assets seized to secure the judgment against the company. Until Realauction posts an acceptable bond, the company is prohibited "from paying any dividends, bonuses or distributions to any investors, officers, or directors, nor may it or they transfer or cause the transfer of any assets of the Defendant without the prior approval of [the] Court, nor may they make any principal payments against any loan…."
In a separate ruling, Judge Hornak refused to grant Realauction's motion to redact certain portions of the trial transcript including evidence that Realauction has been bankrolled and controlled by a Florida company that bids in its auctions in violation of guidelines intended to prohibit such a conflict of interest.
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About Grant Street Group
Grant Street Group (www.GrantStreet.com) has been supplying software as a service to more than 4,300 government and financial institution clients since 1997. Grant Street is the world's largest internet auctioneer, conducting online auctions of bonds, notes, CDs, tax certificates, tax deeds, foreclosures and other financial and legal instruments with a value exceeding $12 trillion. Grant Street Group is also the nation's only supplier of fully-hosted tax billing, collection and cashiering software as a service, including e-payment processing.