Michael Robertson Fails in Final Appeal to Kill Free Speech at Freespire.com

Michael Robertson fails to get government to step in and

kill free speech at Freespire.com, a website critical of Robertson.

Those of you who have been following Michael Robertson's attacks on free speech, by attempting to take down the Freespire.com website, will be pleased to know he has failed at his last and final attempt. This week, Robertson thew in the towel and abandoned his appeal in the case. Freespire.com, the free-speech gripe site dedicated to exposing the "real" Michael Robertson, can now safely live on for years to come.

It is estimated that Robertson spent over $100,000 in his legal attacks to see Freespire.com take down. However, in a previous blog, I had vowed to put my free speech to the test, and see if I could win this appeal without spending one dime on attorney fees, so I represented myself in this matter. I stayed true to my commitment, and am pleased to see that my free speech didn't end up costing me one dime to defend. American's are very fortunate to live in a country where wealthy bullies like Robertson can't buy your free speech for any amount of money.

For those of you not familiar with this case...Freespire.com was launched as a means to expose the real Michael Robertson, and as a resource for anyone thinking about having dealings with Robertson. Understandably, Robertson wouldn't want people finding this site. However, given America's strong First Amendment protections of the press and free speech, Robertson was forced to be clever, and tried using Trademark law to have Freespire.com taken down. As I reported in April of last year, Robertson lost those attempts in court after spending thousands in legal bills on his failed attack. Upon losing the case, he filed an appeal, which he has now given up on.

Honestly, this is the first smart thing I've seen Robertson do in years. I've seen him waste over a million dollars losing in court time and time again (more details of this in my next blog). As with so many of his attacks, the Freespire trademark case was groundless (read the Judge's strong ruling against Robertson here). However, that hasn't stopped Robertson in the past, and it seems to me that his lawyer, Ed Cramp has played Robertson for the fool, making loads off of Robertson. (Although Cramp, like so many of us, may also come to regret ever having met Robertson...read why.)

I was quite surprised to see Robertson finally make a smart decision and stop wasting money on this. One can only speculate as to why he dropped this case... Is he running out of money? (You know what they say about a fool and his money.) Did he stop paying his lawyers? Did he finally figure out all he was accomplishing was bringing more light to Freespire.com while making his lawyers rich? Did he realize I wasn't spending a dime on this? Did he decide he has bigger things to worry about, like the massive copyright infringement case against him from EMI?

The Future of Freespire.com

Now that Freespire.com is safe from Robertson's attacks, look for the site to become even more dynamic. (Visit Freespire.com now to see the beginnings of it's new look.) In addition to the several facts already there, here are just some of the topics you'll be able to read more about in the coming months at Freespire.com:

• My next blog post, "Michael Robertson's Million Dollar Ego," with tabulated figures, facts and details of just how much money Robertson wasted attacking former employees, and see the final "scoreboard" of who won and who lost.
  
  
• Blow by blow accounts of the insurance fraud investigation involving Robertson and his lawyer, Ed Cramp (w/Duane Morris).
  
  
• Updates on Robertson's failure to speak with Linspire shareholders in years since he ran the company into the ground, with millions of dollars still un-accounted for to the shareholders.
  
  
• Timely updates on the EMI copyright infringement case against Robertson. Having worked at MP3.com and closely with Robertson for many years, as well as having been deposed as a witness in the EMI case, I have a unique perspective and access to timely updates for all the developments in that case. For example, find out how Robertson argued that he was involved in all the major decisions at Linspire (where he had little involvement and wasn't the CEO), and yet claimed to have little involvement (read: liability) in the EMI case, where he WAS the CEO of MP3tunes. Don't fall for the spin from Robertson, get the true facts at Freespire.com.
  
  
• Inside perspective from former employees on how Robertson treats them, who he gives special attention to, and who he attacks and his underhanded methods in those attacks.

So, bookmark Freespire.com, and link to it from your websites, blogs, Facebook, Twitter and other social networking pages. (The more links to the site, the higher up it will appear in Google searches to help inform others who may be considering dealings with Robertson.)

With someone like Robertson, you know there will always be interesting reading, so stay tuned to Freespire.com for the latest news on the REAL Michael Robertson.

Kevin

UPDATE #1: Did Michael Robertson and the Duane Morris Law Firm Commit Insurance Fraud against Chubb?

Did Michael Robertson and Ed Cramp with Duane Morris defraud
Chubb Insurance out of $100,000? Read the documents, and YOU be the judge.

NOTE: As with any personal blog, the opinions expressed here are my own. Each reader should come to their own conclusion, based on the factual documents linked to from this and previous blog posts.

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In my previous blog post, I disclosed documents which called to light the possibility of insurance fraud having been committed by Michael Robertson and Ed Cramp, who represents Robertson via the law firm Duane Morris. I felt there was enough evidence to suggest the possibility of insurance fraud, that the matter should be investigated. I therefore turned over evidence to The San Diego Police Department, The Department of Insurance for the State of California, and to Chubb Insurance.

At the heart of the matter, as I reported in my previous blog, Linspire alleged to Chubb that they were a victim of "theft." In their claim to Chubb, Linspire discussed at great lengths a "police report" they had filed with the San Diego Police department, YET FAILED TO DISCLOSE THE OUTCOME of the police department's investigation. According to the San Diego Police department, Linspire had known for months the outcome, namely, that the San Diego Police Department found NO evidence of ANY theft or criminal wrong doing, and yet Ed Cramp and Linspire failed to disclose this in their claim to Chubb.

I mentioned in my blog that I'd keep you updated on the developments of this matter. This is my first update in a series of updates I will be sharing with you, anytime new information comes to light.

Since my blog, I have had numerous calls and correspondence with several people from the San Diego Police Department, The Department of Insurance for the State of California, and Chubb Insurance.

I received a letter from California's Department of Insurance:

"In reviewing this particular case, there are certain allegations that may warrant a regulatory investigation by this department. We have initiated an investigation into this matter..." ~ Department of Insurance, State of California

I have also spoken with several employees at Chubb, and the case has ended up with one of Chubb's investigators who has has been given the assignment to handle the matter. I have had some very informative phone conversations with this investigator. He said he has read all the information about the case which I had submitted, and mentioned that the letter from Comerica was "particularly interesting." (Comerica said they felt that Linspire could possibly be trying to defraud them.) He said in his opinion there was enough to the case to warrant an investigation, which he is now involved in. I have offered my full assistance in his investigation, as have other former Linspire executives. I also said I'd be willing to provide all the other evidence I have in the matter (emails, depositions, bank statements, checks going to personal accounts, etc.)

During our calls, I updated Chubb on the civil case, disclosing to them the full outcome of that civil matter. I warned Chubb that Michael Robertson and Ed Cramp would likely try to use the outcome from the civil case to justify their CRIMINAL claims of THEFT to Chubb. This didn't seem to matter to the Chubb investigator. Because Linspire's claim was for criminal theft, any civil case would likely have little impact on the case. Even if in a civil trial someone was found liable in some way, that wouldn't justify filing a false and deceptive insurance claim saying you were the victim of criminal theft. In fact, should Robertson use the civil case to justify their claim of theft, I believe that would simply open Chubb up to recover any proceeds to recoup the claim. However, Chubb says they always prosecute insurance fraud vigorously, so I'd assume they would be more interested in a criminal prosecution as well as recovering their money.

I'll continue to keep you posted as this case evolves via Freespire.com. Now that I know the appropriate departments are investigating, and have good contact information for all involved, I will keep the pressure on to see this matter continues to be investigated fully and report the findings along the way, regardless of the outcome.

Kevin

PS: The civil case where Robertson attacked innocent former Linspire employees is pretty much concluded. Look for my blog summing up the conclusion of that matter next week, "Michael Robertson's Million Dollar Ego," where I disclose exactly how much money Robertson wasted on his attempts to persecute former employees.

Did Michael Robertson and the Duane Morris Law Firm Commit Insurance Fraud against Chubb?

Did Duane Morris help Michael Robertson defraud Chubb Insurance

out of $100,000? Read the documents, and YOU be the judge.

NOTE: As with any personal blog, the opinions expressed here are my own. Each reader should come to their own conclusion, based on the factual documents linked to from this blog.

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I think everyone would agree that those who defraud insurance companies should be held accountable and criminally liable. When criminals defraud insurance companies, we all pay for it through higher premiums. Each of us should do our part by reporting insurance fraud, anytime we become aware of it.

It is my opinion that Michael Robertson may have possibly committed insurance fraud against the Chubb insurance company, and that Ed Cramp and the law firm he works for, Duane Morris, aided and assisted Robertson in that possible fraud. Only through a criminal investigation and trial would my belief be validated, but in the meantime, I'll present facts and documents and let you, the reader, decide for yourself how ethical the actions of Robertson, Ed Cramp, and the Duane Morris law firm were. Is it fraud? Unethical? Poor judgement? Or just business as usual?

As came out in depositions with Robertson, his company Linspire was paid $100,000 in damages by Chubb Insurance for, what I believe, was quite possibly a fraudulent claim. Presented here are links to the pertinent documents. Read them, then you can decide for yourself if you feel that actions were taken to intentionally defraud the Chubb Insurance company out of $100,000, and that these actions warrant a criminal investigation.

I Believe Michael Robertson, Ed Cramp and Duane Morris Filed a Deceptive Insurance Claim

As many of you know, Michael Robertson has been trying to use the US court system to attack and bully former Linspire employees. Fortunately, the truth continues to come out, Robertson keeps losing in the courts, and the former employees continue to be vindicated, all be it saddled with huge legal bills (a subject I'll discuss in a future blog).

A few weeks back, when I was going through some of the discovery provided by Michael Robertson in his lawsuit against the former employees, I came across one document that made me fall out of my chair. I couldn't believe what I was reading. It was an insurance claim that Ed Cramp (a lawyer with Duane Morris) had filed on behalf of Michael Robertson with the Chubb insurance company. I believe many of the statements in the claim were false and were soundly shown as such in recent court proceedings. (I've attached a signed declaration from Linspire's former IT Director, giving just one of several examples of the false statements I believe Duane Morris alleged in the claim.)

Most shocking, however, was that pertinent information about the situation had been left out of the claim, information that presumably Robertson and Duane Morris would have known about. I can only believe they intentionally left out this critical information to mislead Chubb to get their claim paid. Ed Cramp used the weight of his nationally-known law firm, Duane Morris, to give the claim credibility, so Chubb would likely have assumed that the claim was accurate, truthful and contained all the pertinent information. I'm sure seeing the Duane Morris letterhead on the claim letter gave Chubb a sense of security in believing what was presented in the application. I can't help but wonder if Chubb would be shocked to learn of what was left out, and may very well not have paid Robertson the $100,000 claim, had they been provided with the full story.

What is Insurance Fraud?

Insurance fraud is defined as, "...when someone intentionally deceives another about an insurance matter to receive money or other benefits not rightfully theirs." In other words, when you file a claim with an insurance company, you can't intentionally misrepresent what happened or leave out relevant information in order to intentionally deceive the insurance company so that they are more likely to pay your claim.

For example...suppose you and a friend were at your house, and you both got into a heated argument, and you threw a book at your friend, but instead it hit and broke your TV. Suppose you can't afford to replace the TV, so you decide to file a claim with your insurance company to have it replaced. However, you're not sure if you policy would cover any damage from you throwing a book through your TV, but you are quite confident you are covered for "theft." So, when you file your claim with the insurance company, instead of telling them about the disagreement you had with your friend and tossing the book, you say that a thief broke into your house in the middle of the night and stole the TV. The insurance company, based on your report of "theft," pays you cash to replace the damaged TV. By misrepresenting the facts to the insurance company, you likely have committed insurance fraud.

I believe you'll see from the documents provided below, that this seems to be exactly what Michael Robertson, Ed Cramp and the Duane Morris law firm did.

Robertson's Claim

I've attached a copy of the actual claim letter given to Chubb, signed on Duane Morris letterhead by Ed Cramp. (I've redacted the former employee's names, as Robertson has dragged their names through the mud enough already with his false allegations.)

As you can see, in the insurance claim letter (viewable here), Duane Morris references this as an "Employee Theft Claim," and makes all sorts of claims as to criminal activities such as "theft" and "embezzlement." Duane Morris also references a "Police Report" which Robertson had filed with the San Diego Police Department. The reason I was so shocked when I found the insurance claim, was that the ultimate findings of the San Diego Police Department's investigation were left out of the claim. You see, Linspire had been told the results of the San Diego Police Department's investigation, approximately THREE MONTHS PRIOR to them having filed this claim. Linspire was told at that time that "no crime had been committed and the issues...were civil in nature."

Viewable here is a declaration, signed under penalty of perjury, by Michael McEwen, a Detective with the San Diego Police Department's Financial Crimes Group. It's only two pages long, and I'd encourage everyone to read it. Here is one portion of Detective McEwen's statement:

"Based on my review of the facts of the case, I determined no crime had been committed and the issues discussed in Mr. Robertson's letter and case submission were civil in nature. My conclusion was that the case involved a disagreement between the Chairman and the CEO of the company, which CEO was an officer and agent of the company. This disagreement did not constitute a crime. I relayed my findings on to Mr. Robertson's representative and to Comerica Bank. I specifically told them 'no crime report was taken and no case number issued.'"

So, according to the detective, Linspire knew that the San Diego Police Department had said that no crime had been committed, and had known this for around three months prior to filing their claim, yet they still filed a claim to Chubb alleging criminal "theft" and "embezzlement." I have to doubt that Linspire's policy with Chubb covered, as Detective McEwen put it, "a disagreement between the Chairman and the CEO, " so I believe they probably decided to tell Chubb it was "theft," something for which they would more likely be covered. In my opinion, such misrepresentations could quite possibly constitute criminal insurance fraud and should be investigated further.

Did Duane Morris Participated in Fraud?

Do you think Chubb would have paid out $100,000 to Robertson had they known of the San Diego Police Department's findings? If Duane Morris had included the findings from the police investigation (as I believe they certainly should have), and let Chubb know that Linspire was told "no crime had been committed," would Chubb have paid the claim? Not having a copy of the insurance policy to review, I can't know for sure, but I do believe it's likely that Robertson and Duane Morris may have felt their chances were better if Chubb considered the claim "theft" and a "crime." I think that is likely why they left out the results of the police investigation, so that the insurance company would not find out what the results were so Linspire's claim of "theft" would more likely be covered. Regardless of what the policy would or would not have covered, leaving out such pertinent information is possible grounds for insurance fraud.

How could the law firm of Duane Morris not have known the results of the police investigation were pertinent? They went to great lengths in their claim to list out all the details of their allegations of "theft" to the police department, even attaching a copy of their "police report," and yet they didn't think to let Chubb know the outcome of that investigation three months after those results had been given to Linspire? Does Duane Morris expect us to believe that Ed Cramp didn't know the outcome? Would Ed Cramp be that incompetent to include the "police report," and yet not take a minute to find out what the results to that report were? In his deposition, Robertson was asked, "Who was the person who liaised with the police department about the police report; in other words, communicated with the police department?" For which Robertson replied, "Michael Umansky." At that time, Michael Umansky was another attorney at Duane Morris who, along with Ed Cramp, worked on the Linspire matter. Robertson also testified that Umansky helped create the "police report" document, and yet Ed Cramp didn't bother to find out how it turned out? It just isn't believable to me. I have to believe Ed Cramp, Michael Umanskey and Duane Morris absolutely knew the outcome of the police investigation, and yet, it appears that THEY FAILED TO DISCLOSE THOSE RESULTS to Chubb. That is by definition insurance fraud, in my opinion, and I have to wonder if Chubb would agree.

A pattern of fraud? Did Robertson and Duane Morris also try to defraud Linspire's bank Comerica in a similar fashion?

Another extremely interesting document that came to light in discovery was a letter from Linspire's bank, Comerica, to Duane Morris. In December of 2008, I blogged about how Robertson lost in summary judgement a case against Comerica. (You can read the details of that outcome here.)

As you can see in this letter from Comerica to Duane Morris in January of 2008, Comerica felt that Robertson and Duane Morris had made "false claims" in trying to have Comerica pay for wire transfers to employees for severance. (Keep in mind this letter came to Duane Morris two weeks BEFORE they filed their claim with Chubb.) Robertson and Duane Morris did the exact same thing to Comerica that they did to Chubb Insurance, using their "police report" to imply they were the victim of "theft," and yet failed to tell Comerica the no-crime-was-committed results of that investigation. Comerica had to track down and interview Detective McEwen themselves, since Linspire did not disclose Detective McEwen's findings to Comerica. As you can tell from the stern tone in Comerica's letter, they felt very much deceived, and called into question not only Linspire's credibility, but that of Duane Morris as well:

"Not only does this undermine Linspire's credibility, it also undermines yours. The motivation underlying Linspire's decision to refrain from signing the Fraud Affidavit under oath is so obvious it strains credulity to suggest it is either accurate or legitimate."

The letter points out that Duane Morris knew of the outcome of the police report BEFORE they gave a copy of it to Comerica:

"Detective McCewen advised Comerica that no case number was assigned to the Draft Police Report because--as he said he informed you prior to your delivery of the Statement and the Draft Police Report to Comerica--the District Attorney determined that no crime was committed and that this was a civil dispute between Linspire and the Employees. He pointed to the employment contracts provided by Linspire to the SDPD, which indicate that the respective amounts of the Employee Wires were less than the amounts legally owed by Linspire to the Employees for contractual severance."

Comerica's letter ends in pointing out that defrauding a financial institution is a crime:

"See, 18 USC 1344 (federal crime to knowingly execute or attempt to execute shceme to obtain money of financial institution by means of false or fraudulent pretenses, representations, or promises)."

These are just a few excerpts from the letter. I would encourage everyone to read the entire letter here. You'll see that the Comerica bank shares many of my beliefs about Robertson and his lawyers. It's hard to imagine that after Duane Morris received this stern letter from Comerica, warning them of possible criminal charges for fraud, that Duane Morris would, just two weeks later, make the same allegations to Chubb. This is evidence that Duane Morris likely knew full well what it was choosing to include, and leave out, when they sent their claim to Chubb.

One might wonder why a nationally-known law firm would put itself at risk by seemingly participating in insurance fraud. Consider what happened in 2002 with one of the Big Five accounting firms, Arthur Andersen. After being found guilty of criminal charges relating to the firm's handling of auditing of the failed Enron corporation, Arthur Anderson voluntarily surrendered their licenses to practice as Certified Public Accountants in the US. Firms can become so addicted to collecting hundreds of thousands of dollars of easy client fees, that they just don't have the courage or willpower to stop and drop a questionable client who pressures them to participate in an activity that finally crosses the line.

I've always had a low opinion of Michael Robertson's ethics (see www.freespire.com), and why I feel he needs a strong, ethical law firm to keep him in check. It's very disappointing that such a large, seemingly respectable firm such as Duane Morris would let Robertson pull them down into what I believe are fraudulent activities. Is this the standard Duane Morris holds itself up to? I have to wonder if filing such a claim was something only Ed Cramp was comfortable doing, or is this the culture at all of Duane Morris?

I find it quite ironic that Robertson falsely accuses former employees of criminal activities, and yet he may be the one who attempted the real crimes of bank and insurance fraud. Robertson tried to have former employees arrested and thrown in jail. They have been vindicated of any criminal wrong-doing. I think the facts now show that it's Robertson and Ed Cramp who need to be investigated and perhaps belong in jail and disbarred. Hopefully Chubb will investigate, along with the appropriate government insurance fraud investigation units.

I have forwarded a copy of this blog to Chubb, who claim they prosecute insurance fraud vigorously, stating "We will not pay a fraudulent claim. In fact, we will spare no expense when fighting fraud." I have also filed a police report on this matter with the San Diego Police Department, as well as filed a report with the Department of Insurance for the State of California.

Kevin

PS: Follow the outcome of any investigation on this matter at Freespire.com.  

Court Orders Michael Robertson to Pay Former Employee $300,000+

Robertson's attacks continue to backfire. Court orders

him to pay over $300,000 to a former Linspire employee.

For those of you following the case of Michael Robertson's insane attacks on former Linspire employees, you will be interested in the latest development from the court today...

One of the former Linspire employees that Robertson attacked was the Controller. This employee (along with several others) was vindicated of all counts in September. Because the Controller had a contract dispute with Robertson, attorney fees are usually awarded, but of course Robertson fought paying. Today, the court awarded the Controller and his lawyer $215,000 in legal fees and $22,958 in prejudgement interest. The Judge also affirmed the jury's damages judgement of $72,500, to be paid by Robertson (Linspire) to the Controller. This means that Robertson will have to pay over $300,000 to just this one employee for his failed attempts in attacking him in the courts. You can read the ruling here. (This is the tentative ruling which was affirmed in court today by Judge Taylor.)

Three of the other employees who were also fully vindicated in the ruling in September, decided not to go after Robertson for their attorney fees, just wanting to move on with their lives. This means Robertson's false allegations and attacks have left them saddled with tens of thousands of dollars in legal bills. All of this makes one wonder why anyone would want to work for Robertson?

I'm glad the Controller decided to go after Robertson for his baseless attacks and that the court system once again worked. As best as I can estimate, between the damages awarded against Robertson and his own legal bills, he will have wasted well over a half million dollars on his vendetta against these employees. (In an upcoming court motion, we may even learn exactly how much money Robertson has wasted on his lawyers.) What a waste of time, money and energy, but then, I've never know Robertson to be sane and rational in his thinking when it comes to his bruised ego. He spends all this money only to shine a spotlight on what kind of person he really is. Brilliant!

Congrats to the Controller and his lawyer, Greg Goonan (who the judge even referred to as "formidable" in his ruling) on seeing that justice continues to be served against the bully Robertson. It's been over three years since the Controller lost his job at Linspire and Robertson denied him his rightful severance. Today, he finally got justice, well, that's assuming Robertson actually PAYS the court-ordered damages. If he doesn't, of course, I'll let you all know.

Kevin

Jury Vindicates Former Linspire Employees of 3-Years of Attacks by Michael Robertson!

Once again, Michael Robertson's bullying has been put to an end
by the greatest legal system in the world. Yesterday, a jury vindicated
four former Linspire employees who were being wrongly abused and
attacked by Michael Robertson. He knew these employees had
done nothing wrong, but used them as innocent pawns in his attacks.

Many of you who follow my blog do so to keep tabs on the litigious antics and bullying of multi-millionaire Michael Robertson. You also know that I started blogging about Robertson only after he started attacking former Linspire employees who I knew to be honest, good people. I've never had any problem with Robertson disagreeing with me or what I did as CEO for Linspire. It was his attacking these blameless employees that bothered me. Those employees deserved being stood up for as Robertson tried to roll over them.

When asked why he was attacking all these good people, Robertson would say, "Just wait until I get my day in court. You'll see the truth." Well, Robertson not only got his "day" in court, but he got three weeks, and we now do have the truth. Yesterday, after being in the court house for three weeks, the jury returned their verdict. Read on....

Quick Summary of the Case

Three years ago, I was the CEO for Linspire. Michael Robertson had stepped down two years earlier, and had virtually no involvement in the running of the company since. However, after the Linspire employees brought in a VERY profitable year, Robertson suddenly decided he wanted to be involved. He first asked me to have Linspire transfer $1,000,000 to himself and $500,000 to his father-in-law, the two preferred shareholders. I explained to Robertson that he couldn't just take money out of the company like that, and that there were around 100 other shareholders to consider. If he wanted a distribution, the company would need to offer it to ALL shareholders, not just Robertson. I then came up with a stock-buy-back plan which would have gotten his father-in-law the $500,000 Robertson wanted him to get, BUT in a legal, fair and equitable way, taking ALL shareholders into account.

Robertson rejected my stock-buy-back proposals. I believe he realized that the only way he could get his hands on the majority of the money (without having to share any with the other shareholders), was to run the company into the ground, liquidate it, and then he and his father-in-law, as preferred shareholders, would be first in line to get paid from any liquidation proceeds. (Which is exactly what he did, and in ten short months, millions of dollars from the company magically disappeared and the company was sold. To this day, shareholders have been given no accounting as to what happened.)

Robertson next wanted me to lay off several long-term, dedicated Linspire employees with only two weeks of severance (even though they had just turned in an VERY profitable year). I refused and told Robertson I wanted no part in such a selfish act. I told Robertson that I wouldn't come into work the coming week so that he would have plenty of time to fire me, take the CEO position back, and then fire the employees as he saw fit. Robertson never did fire me or any of the employees, but rather, called me a week later insisting I come back to the office and do his dirty work, fire the employees, give them two weeks of severance, and transfer $1.5 million to him and his father-in-law. Again, I refused, this time telling him I would return to work and execute the layoffs, but that I would give the employees a fair and reasonable severance, not the two weeks he wanted. That is exactly what I did. I returned to the office and laid off the employees, giving them what I believed was the correct severance. As came out in court, as the CEO, I did intentionally navigate the situation to prevent Michael from stepping in and harming these employees (for which the Jury awarded some small damages against me). I stand by my authority as CEO to have taken the actions I did, and I am glad to have protected these good employees. When I laid the CFO off, he even agreed to take less in severance than he was due based on his employment agreement, which more than offset the additional severance I awarded the other employees, in essence, saving the company money AND treating the employees fairly.

Robertson, upset by my actions, absolutely refused to talk or meet with me (even after repeated attempts by me to meet with him to explain all that had happened), but instead, set about attacking me and the laid off employees at every possible turn. He did many despicable things to these employees, including filing a lawsuit, accusing the former employees of fraud, conspiracy, etc. simply because they were laid off and given severance by me, the CEO. The complaint asked for $318,000 in damages from the employees. The six employees involved were two VPs, one Team Lead, the Controller, the CFO, and myself (the CEO). The only one Robertson should have gone after was ME. I am more than happy to accept any judgment against me IF I did in fact do anything wrong, but I will never forgive Robertson for having gone after employees HE KNEW did nothing wrong. Dragging them into this was disgusting and shows exactly what kind of person he is.

The Jury's Verdict

As hoped, the jury completely vindicated the employees he dragged into this. As you'll see, they did find me responsible in a few areas and awarded a small amount of damages.

Here is what the jury found...

VP #1 - Not liable on all counts and gets to keep all of his severance.

VP #2 - Not liable on all counts and gets to keep all of her severance.

Team Lead - Not liable on all counts and gets to keep all of his severance.

Controller - Not liable on all counts AND Robertson was ordered to pay him $72,500 in damages. (The controller had an employment agreement for six months of severance which Robertson had previously refused to honor.)

The only thing that went Robertson's way was that I (CEO) and the CFO were found responsible in a few areas, and Linspire was awarded a small amount of damages from us (equivalent to about four months worth of the CFO's severance), but the damages were far from what Robertson wanted so the jury definitely didn't agree fully with Robertson's side of things. I still believe everything I did was within my authority as CEO, and the CFO did absolutely nothing wrong, as he was simply following my directions (which his employment agreement told him to do). So...

CFO - As I mentioned, he had an employment agreement for two years of severance, but Robertson wanted him to get only two weeks, later moving that up to 2.5 months (in trial he requested the CFO get NO severance). The CFO, however, agreed to accept only 12 months of severance when laid off, saving the company the other 12 months of his severance. The jury ruled that the CFO could keep all of his severance, but awarded damages to Linspire which equated to about 4 months of the CFO's severance. (Even though the CFO essentially ended up with 8 months of severance, well above the 2.5 months Robertson wanted him to receive, we are considering a post trial motion given that he had an employment agreement for two years of severance and was terminated without cause.)

CEO - Like the CFO, I too had an employment agreement giving me two years of severance. However, after laying off the employees, I freely resigned and walked away from my severance, wanting nothing more to do with Robertson. The jury found me responsible for the same items as the CFO and ordered that I be joined in those same minor damages.

The Bottom Line

Needless to say, I was THRILLED with the jury's verdict. Robertson attacked these good employees, out of spite, greed and ego, and wound up with essentially nothing but a big pile of legal bills. I have never cared what judgments came to me--I have always been prepared to live with any of the consequences of my decisions as CEO--but to see the employees vindicated was great. It's been a long three years of Robertson attacking these good people and blemishing their reputations. It was nice to see their names cleared.

So, the bottom line? As per the complaint, Robertson wanted to 1) take away ALL the severance from ALL the employees and be awarded $318,000 AND 2) not be forced to pay the Controller his severance of $72,500. After the jury's verdict, Robertson will end up netting only $8,833, all while having spent, I'm sure, hundreds of thousands in legal bills (ouch!) and quite likely being liable for more, since all the employees who were found not having done anything wrong are of course asking the judge for statutory indemnification and legal fees. It's certainly not fair that these faultless employees should have to pay their legal bills for just defending themselves against Robertson's baseless attacks.

Far more important than the financial victory, however, is these former employees have their good names back! Justice was served!

There were a lot of interesting things to come out of the trail such as why Robertson has never told the shareholders what happened to their investment in Linspire, how he feels about common shareholders who he called "second class" from the witness stand, the many despicable measures Robertson took in attacking these former employees, and much more. I will do a follow-up blog with some of these details, but for now, I just wanted to share this wonderful news and take some time to enjoy this favorable outcome.

This is the third loss Robertson has suffered in the courts relating to the layoffs. He lost against his bank Comerica and also against the gripe site Freespire.com. At least his lawyers are doing very well. =)

Thank you's

Thanks to my co-defendants. We have all grown closer together having had to go through this. You have all been wonderful, and as I said, I couldn't be happier for you with the outcome. (Pool party? =)

I want to thank the AMAZING lawyers Gil Cabrera and Greg Goonan who did such a wonderful job at representing us. More important than the outcome, as defendants, we were all so very proud of the way these fine men conducted themselves. There were actually points in their closing arguments that brought many of us to tears, as they advocated for us and the truth. If you ever need a great lawyer, these two are the best!

I want to personally thank all the jury members who had to spend THREE WEEKS of their lives in the court house dealing with this. America has the best legal system in the world, and at the center of it is our jury system. Thank you from me and all the defendants in this case!

I don't know if it's appropriate, but I have to do it, a BIG thanks to Judge Timothy Taylor. I was SO impressed with how he conducted every minute of this case. There was one part where Robertson's lawyer was hammering away at me, trying to make me look guilty because I couldn't find something in a document, but the Judge DID find it and pointed it out. I don't thank him for that, I thank him because he would have done the same for the other side. He is truly a wonderful example of what a smart, fair, and just judge should be. He WAS the smartest man in the room, as it should be.

Lastly, I want to give a special thanks to the many friends and former employees who showed up at the court house to support us these past few weeks! Seeing you there in support was greatly appreciated by me and the other defendants. It was so touching to have received so many emails, not only wishing us all the best, but actually saying you were "praying for us" and that the truth would come out. Thank you from all of us for those prayers. They were answered.

Kevin

Can Michael Robertson Buy Your FREE Speech for $250,000?

Is "free" speech really free? Or can someone like Michael Robertson spend $250,000 to buy yours? He seems to think so. I'm going to put it to the test. Is my free speech really "free?" We'll soon find out...

Michael Robertson thinks he's bigger than the 1st Amendment, you know, that thing that says government can't pass laws to deprive one of their right to free speech. Most countries don't have anything like our 1st Amendment, and it's one of the things that makes America so great. Robertson claims to be a champion of free speech, but when it comes to speech critical of him, he wants government (via the courts) to step in and help him kill it. Robertson has added himself to the long list of those who are trying to whittle away at the 1st Amendment, and usher in an era of political correctness where no one gets their feelings hurt by another's speech. He's the classic example of the bully who loves to dish the criticism out (see his blog, that's pretty much all he does), but can't take it himself.

For those of you not familiar with the Freespire.com case, Michael Robertson has been trying unsuccessfully for nearly TWO YEARS to kill free speech on the Internet at www.freespire.com. Freespire.com is a gripe site, "dedicated to shedding light on the REAL Michael Robertson." You can read the court history here, where you'll see that Robertson has spent an estimated $100,000 to $150,000 and lost at every turn. Fortunately, the 1st Amendment isn't an easy thing to bring down, and without spending a tenth of what Robertson has spent, Freespire.com has continued to win in the courts.

When Robertson lost in the final court case to try and bring down Freespire.com, knowing what an insecure egomaniac Robertson is, I predicted the following:

I won't be at all surprised if Robertson appeals, as he might still have a little money left. (What's that they say about a fool and his money? ;-) But, I'm happy to see Robertson wasting his money (as I'm sure his attorney Ed Cramp is too =), since I won't be the one spending anything, just like before. Doesn't Robertson understand that the more he attacks, the more attention he just brings to Freespire.com? He spends HIS money to bring more attention to the very thing he's trying to shut down. Doi!

Some of us who worked for Robertson have a saying, "Take the smartest, most logical thing to do, and plan on Robertson doing the exact opposite." It's what makes him so predictable. What would be the dumbest thing to do here? To appeal and waste more of your money to bring attention to freespire.com. So, what can we expect from Robertson...you got it. Mark my words.

Robertson is as predictable as a dumb donkey, and sure enough, today I learned that he has appealed this no-win case. He could end up blowing around $250,000 on this loser. (Don't you wish you had that kind of money to waste on your bruised ego?)

Putting Free Speech to the Test

I'm confident enough in our 1st Amendment (and Robertson's incompetence in attacking it), that I'm going to put my free speech to the test. I will not spend one penny on this case. I have already released Gil, my lawyer who had done such a great job on this case up until now. Even though Gil easily won this case on a very small budget, I believe one should be able to defend their free speech for, well, for free. Let's find out if it can be done.

I'm going to represent myself in this case, or with the assistance of any unpaid, "free" volunteers. If I win, then our 1st Amendment is alive and well. Should I lose, then I guess free speech isn't so free after all, and bullies like Robertson can buy yours for around $250,000, and we'll have to start calling it "quarter of a million dollars speech," instead of "free speech."

So, choose your team. Team Robertson or Team Free Speech. Let me know who you'll be cheering for.

Who knew all those years ago when I decided to name the Freespire OS by that name, it would take on a much greater meaning, that of an American's right to FREE speech. Long live FREE Speech, and long live FREEspire.com!

Kevin

My Father's Day Tribute Video

This is a tribute video I tossed together for Father's Day using one of the tracks from the new Jayson Haws CD we've been recording here at my place. Hope you enjoy it, and Happy Father's day to all the dads!



Kevin