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Pay By Touch founder files for bankruptcy

pbt.jpgJohn Rogers, the founder of biometrics startup Pay By Touch, has filed for personal bankruptcy, the San Francisco Business Times reports. On top of that, four employees are seeking $60,000 or more in back pay from the company, and are trying to force Pay By Touch into bankruptcy to get what they're owed. Pay By Touch is not actually in bankruptcy yet, and the company could try to oppose the move in court or come to a settlement. Rogers, who has a controversial past, holds two-thirds of the company. But investors who have arranged a $163 million loan for the company are suing in a dispute over the makeup of the board. Add that credit line to the $190 million in venture capital the company has raised. With $350 million in stake, you'd think investors would be fighting over how to salvage something from this troubled company.

4:26 PM on Fri Nov 9 2007
By Owen Thomas
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3 comments

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  • Image of fatbastard fatbastard at 11:44 AM on 11/11/07
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    $190 million? The real total is more like $400 million. Also, most of their funding was raised from hedge funds who wanted nothing to do with running the company or following it. This was during the cheap money, liquidity bubble of recent years where the mantra was, "I don't care what your business model is and I don't want a board seat. Just show me where you fall in a risk matrix and possible exit strategies."

    For some odd reason, they want their money back now. Redemption time is a bitch aint it boys?

    Also, the employees suing to get paid is a ploy by JR to get control of the company back. The employees are his family or their cronies. His mother is/was the head of HR...one reason why nobody at the company spoke out against him and his hijinx.

  • Image of SFJT SFJT at 09:27 AM on 11/12/07
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    Also, the employees suing to get paid is a ploy by JR to get control of the company back.

    That may be, but I know many, many people who have been stiffed by the company. Pay By Touch is also being sued for wrongful termination by a former SVP as well as by the ex-head of HR (who was ousted to make way for Rogers mother).

  • Image of Nicholas Carlson Nicholas Carlson at 02:53 PM on 11/12/07
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    @SFJT: This I need to hear about. Shoot me an email?

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