``Near the end of 2005 it became apparent to digEcor that the quality of the portable 5500 was slipping, warranties were not being honored and that Maycom needed to be replaced as the manufacturer.``

It was so apparent that they decided to make the final payment themselves...lol.

So we are into June and digecor still has not one XT in production, not to mention an incomplete production line. Whose fault is that?

If they were aware in the latter part of `05 that Maycom needed to be replaced, why didn`t they immediately outsource to another manufacturer rather than make a final payment to Maycom?

It seems their inability to respond to market issues is now an attempt to shift the blame to e.Digital, and mguru, you may be correct that in that effort they may have defamed EDIG, which could result in EDIG having issues with some potential customers.

If they can demonstrate damages, there may be something to that but it has only been a week since that became public. I am sure the attorneys are on top of it and will gauge any failed sales efforts with that in mind.