A representative of San Francisco-based Solidus said the company initially had 20 days to respond to the petition, filed on Nov. 1, adding that “we are not in bankruptcy.” She declined to comment further about the company’s response to the filing.
Solidus, which has been an active acquirer of biometric and loyalty marketing companies over the past several years, has raised more than $300 million in debt and equity from venture and hedge fund investors since 2003. Current backers include
The company allows customers to pay for purchases by placing their index finger on a sensor for identification.
The bankruptcy petition is apparently one of several legal actions that the company is facing. The company has also been served with a securities fraud suit, two wrongful termination suits, and one breach of contract suit by an allegedly unpaid contractor, according to a report in VentureWire. Pay By Touch CEO and founder John Rogers has also filed for personal bankruptcy, according to a report in the San Francisco Business Times.