DENVER, Oct. 13, 2015 /CNW/ -- ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced that on October 12, 2015 it was served with a summons in a civil action by its former sales affiliate in its tech support channel ("Sales Affiliate") claiming they are presently due approximately $600,000, plus additional amounts as future sales are processed, for their portion of the subscription revenue for certain customer subscription renewals realized by the Company's wholly-owned subsidiary, Identity Rehab Corporation ("IRC"). The Sales Affiliate claims that these renewals occurred subsequent to the November 21, 2014 termination of the sales arrangement between the Sales Affiliate and IRC. In addition, the Sales Affiliate is claiming that it is due a net amount of $159,366 from IRC which was wrongfully paid to IRC by its third party billing processor.
Also, in a letter dated October 8, 2015, counsel for the Sales Affiliate demanded payment within 30 days of $477,798 plus attorney's fees and costs, which is comprised of the previously-mentioned $159,366 plus treble damages as claimed to be provided by statute.
The Company believes these claims are without merit and it intends to vigorously defend itself against these claims.
About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ID Watchdog, Inc.
Jay B. Lewis
Chief Financial Officer
SOURCE ID Watchdog, Inc.