UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported) September 15, 2009
PAYMENT
DATA SYSTEMS, INC.
(Exact
name of registrant as specified in its charter)
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NEVADA
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000-30152
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98-0190072
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(State
or other jurisdiction
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(Commission
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(IRS
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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12500
SAN PEDRO, SUITE 120, SAN ANTONIO, TEXAS
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78216
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code (210) 249-4100
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
8.01 OTHER EVENTS.
On August
29, 2008, Tara Patrick p/k/a Carmen Electra, commenced legal action against us
in the Superior Court of the State of California for the County of Los Angeles.
On October 7, 2008, we removed that case to the United States District Court for
the Central District of California – Los Angeles Division. With respect to the
suit, the plaintiff alleged that we violated her rights of publicity and
breached the terms of its license agreement with her. The plaintiff alleged and
sought resulting economic, exemplary and punitive damages, interest, attorneys'
fees and costs of court. On November 14, 2008, we filed a counterclaim against
Ms. Patrick in the United States District Court for the Central District of
California – Los Angeles Division alleging that she breached the terms of our
license agreement with her. We alleged and sought to recover damages arising
from her breach of the agreement.
On
September 15, 2009, we entered into a settlement agreement with Ms. Patrick.
Under the terms of the settlement, both parties dismissed the pending
litigation, with prejudice, and released all claims against each other.
Additionally, we agreed to pay $6,000 to Ms. Patrick and $500 to a charity of
her choosing and she agreed to return all 735,295 shares of our common stock
held by her to us. We believe the terms of this settlement to be a reasonable
resolution of this matter. We will not incur any additional expenses associated
with this litigation.
This
report contains forward-looking statements that involve risks and uncertainties.
We generally use words such as "believe," "may," "could," "will," "intend,"
"expect," "anticipate," "plan," and similar expressions to identify
forward-looking statements. You should not place undue
reliance on these forward-looking statements. Our actual results could differ
materially from those anticipated in the forward-looking statements for many
reasons including our ability to implement our business plan, our ability to
raise additional funds and manage our substantial debts, consumer acceptance of
our products, our ability to broaden our customer base, and other risks
described in our reports filed with the Securities and Exchange Commission from
time to time. Although we believe the expectations reflected in the
forward-looking statements are reasonable, they relate only to events as of the
date on which the statements are made, and our future results, levels of
activity, performance or achievements may not meet these expectations. We do not
intend to update any of the forward-looking statements after the date of this
document to conform these statements to actual results or to changes in our
expectations, except as required by law.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
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Payment Data Systems,
Inc.
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(Registrant)
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Date September 21, 2009
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/s/ Michael R. Long
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(Signature)
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Michael R. Long
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Chief Executive Officer and Chief Financial
Officer
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