(Last Updated: October 30, 2025)
GENERAL UPDATE
Please click here for our letter to shareholders (as of June 6, 2024).
LATEST LITIGATION UPDATE (as of October 30, 2025)
Over the past five years, Vertical Computer Systems, Inc. (VCSY) and NOW Solutions, Inc US (NOW) have been mired in the many legal entanglements directly related to Richard Wade’s tenure at the Company. Mr. Wade's fiduciary mismanagement created many legal issues for the current Board and Management after the existing Board was seated.
As some who have followed VCSY and NOW’s legal entanglements, you might be aware of the original case with VCSY, Luiz Valdetaro, and Shareholders who sued Mr. Wade and won a judgement back in 2023. The Texas Supreme Court reviewed and found a technicality in representation notice and kicked the case back to the same judge for retrial. This retrial has concluded and again with the successful prosecuting of Richard Wade on numerous fiduciary violations including over $18M in destruction of shareholder value, embezzlement and fraud this September 2025. It also added additional embezzlement and fraud charges above the original award.
In addition to his destruction of shareholder value, Mr. Wade, through his past dealings has put the only revenue generating entity at significant financial and legal risk and exposure, the subsidiary NOW Solutions, Inc. VCSY owns 100% of shares in the subsidiary NOW Solutions Inc. was forced to seek protection under Chapter 11 of the bankruptcy code in September 2025 to protect the entity, its staff and customers from a suit against VCSY filed and awarded Scheef & Stone who pursued collections, and was granted a turnover order and receivership order by Collin County Texas courts. This action by the court forced NOW Solutions, Inc. to seek protection from the court order against VCSY.
We are providing the following links to each court case where we are either a defendant or a plaintiff in these legal actions: http://litigations.vcsy.com/
For investors' inquiries, please send an e-mail to shareholdersboard@vcsy.com