Bill Perell co-founded Marketel International. Here is news on his litigation against Priceline.
WASHINGTON -- Priceline.com Inc. (PCLN) plans to take an unspecified charge in the fourth quarter because Walker Digital, the privately held company that launched Priceline, may not be able to help pay for patent litigation expenses, Priceline said in a filing with the Securities and Exchange Commission on Wednesday.
Walker Digital had agreed to pay "a portion of legal expenses incurred in connection with certain patent litigations and indemnify (Priceline) for damages, liabilities and legal expenses incurred in connection with litigation involving Marketel International Inc," according to the filing.
Walker Digital, which like Priceline was founded by Jay Walker, informed Priceline that it's restructuring and "significantly reducing its workforce as a result of capital constraints," the filing said.
Priceline "believes that Walker Digital's ability to fulfill its obligations under these agreements is in doubt. Accordingly, (Priceline) expects to record a charge in the fourth quarter of 2000" primarily for fees and litigation expenses.
The company didn't specify the size of the charge.
According to Priceline's most recent quarterly report, filed Nov. 14 with the SEC, Marketel International Inc. filed a lawsuit saying Priceline "conspired to misappropriate Marketel's business model, which allegedly was provided in confidence approximately ten years ago."
Priceline denied the charges. Motions in the case are scheduled to be heard Dec. 5, with a trial set to begin Jan. 16.
"Walker Digital has agreed to indemnify, defend and hold (Priceline) harmless for damages, liabilities and legal expenses incurred in connection with the Marketel litigation," the Priceline quarterly report said.
Priceline is an E-commerce system that allows consumers to name their price for products and services.