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Creative Mobile Technologies, LLC Files Suit Against VeriFone Systems, Inc. and VeriFone Media, LLC for More Than $250 Million

 Creative Mobile Technologies, LLC Files Suit Against VeriFone Systems, Inc.
   and VeriFone Media, LLC for More Than $250 Million in Damages Related to
           Contractual Breaches of Its In-Taxi Technology Agreement

PR Newswire

NEW YORK, Dec. 17, 2012

NEW YORK, Dec. 17, 2012 /PRNewswire/ --Creative Mobile Technologies, LLC
(CMT), a leading provider of in-taxi media, advertising and payment
technology, has filed a civil action against VeriFone Systems, Inc. (VeriFone)
and VeriFone Media, LLC (VMS), seeking damages in excess of $250 million. The
suit charges the defendants with "wrongful, malicious, tortious and
contractual breaches" of CMT's agreement with its exclusive in-taxi
advertising partner, VMS, formerly Clear Channel Taxi Media, LLC (CCTM). Among
other things, the lawsuit seeks damages arising out of VMS's failure to pay
CMT in violation of its revenue-sharing obligations under their agreement and
for VMS's blatant disregard of CMT's first refusal rights.

The lawsuit alleges that VeriFone, including its Chief Executive Officer
Douglas Bergeron, knew of the existence of the exclusive agreement between CMT
and CCTM when VeriFone purchased CCTM in 2009 and that VeriFone specifically
acknowledged its subsidiary's obligations under the agreement and said that
those obligations would be honored. Despite these assurances, the lawsuit
alleges that VeriFone, a competitor to CMT, employed a combination of bad
faith dealing and other tactics that caused VMS to breach the agreement in
numerous ways. Among other things, the lawsuit alleges that VMS withheld
financial information from CMT, delayed payments to CMT for certain
advertising, refused to pay CMT for other advertising, and violated the
agreement's broad rights of first refusal by installing similar technology and
placing advertisements in taxis outside of New York City without first
offering those opportunities to CMT as required under the agreement. Such
locations include Miami, Las Vegas, Atlanta, San Francisco, South Africa, and
London.

The action was filed in the New York State Supreme Court in Manhattan by CMT's
attorneys Skadden, Arps, Slate, Meagher & Flom LLP and co-counsel Rosenberg,
Calica & Birney LLP. John L. Gardiner, partner at Skadden and co-head of the
firm's International Litigation and Arbitration Group, is the lead attorney on
the case. He said: "As alleged in the complaint, while our client fully and
faithfully performed its obligations under the agreement with VMS, even after
VMS was acquired by VeriFone, VeriFone intentionally and maliciously caused
its subsidiary VMS to violate its contractual obligations to CMT, causing
severe damage to CMT, damage that CMT believes to be in excess of a quarter of
a billion dollars. CMT intends to pursue its legal rights under the agreement
with VMS."

Background

When CMT was founded in 2005, the company pioneered new technologies to comply
with New York City's taxi service enhancement needs, developing the Passenger
Information Monitor (PIM), which made the unprecedented in-taxi advertising
platform possible. CMT's sales partner was CCTM with whom the technology
company had entered into an exclusive Sales Representation Agreement starting
in March 2006. CMT bore the financial burden of development, acquisition, and
installation of all the in-vehicle technology, including the PIM, as well as
the entire payment processing and content delivery infrastructure, while CCTM
agreed to run the advertising program on CMT's in-taxi screens as the
exclusive seller in New York City taxis.

Given the disparity in the level of initial investment, CCTM afforded CMT the
right of first refusal for the launch of similar technology in markets outside
of New York City. The two companies also agreed to revenue sharing should
CCTM advertise on non-CMT in-taxi media screens in New York City. As CMT
alleges, the revenue-sharing violations are substantial and ongoing.

About Creative Mobile Technologies

Founded in New York City in 2005 by taxi industry leaders, CMT services more
than 20,000 taxicabs in 30 states and over 60 cities with a variety of taxi
technologies and customer enhancements, including credit and debit card
processing, media and advertising content, text messaging, interactive
passenger maps, GPS, electronic trip sheets, driver payment solutions, and
back-office fleet management systems. CMT has more than 6,600 units in New
York City alone. CMT's unique "for the industry, by the industry" business
model has empowered taxi fleets and individual taxi operators throughout the
country with customized solutions rooted in the company's hard-earned taxi
industry pedigree. CMT's "FREEdom Solution" integrates all of the technology
including the necessary in-vehicle equipment, banking, and media components to
help bring the American taxi industry into a new era of efficiency,
innovation, and profitability. To learn more, www.creativemobiletech.com

SOURCE Creative Mobile Technologies, LLC

Website: http://www.creativemobiletech.com
Contact: Michael Woloz, Connelly McLaughlin & Woloz, +1-212-437-7373,
mwoloz@cmw-newyork.com; Karen Imas, Connelly McLaughlin & Woloz,
+1-212-437-7373, kimas@cmw-newyork.com
 
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