Quite a few years ago, Q Ventures LP started talking to PalmGear about giving it some venture capital. A few months later, Q Ventures broke off these negotiations and filed a lawsuit, claiming the PalmGear had agreed to sell it 80% of the company and then changed its mind.
After years of legal wrangling, a court ruled that there had never been any such agreement and it was Q Ventures itself who ended the negotiations.
Many at PalmGear have long held the belief that this lawsuit was a deliberate "dirty trick" and Q Ventures never expected to win. Instead, the lawsuit was intended to drain money from PalmGear. This is based on the fact that Q Ventures is one of the founders of Handango, PalmGear's chief rival.
However, PalmGear wasn't able to prove this in court. If it had, Q Ventures would have been required to pay PalmGear's legal expenses. As it was, PalmGear spent over a million dollars defending itself from the suit.
This left PalmGear close to bankruptcy. It was unable to pay developers the money it owed them in a timely manner, generating lots of ill will towards it.
Only in the last year has the company got its feet back on the ground, and this is mostly because it was bought out by Power By Hand LLC.
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PalmGear Revenues Up Sharply
