iCoreConnect settles lawsuit, avoids asset auction

iCoreConnect Inc. (NASDAQ:ICCT), a company with a market capitalization of $2.48 million and currently trading at $1.46, has entered into a Settlement and Mutual Release Agreement, effectively terminating a public auction of its assets, as per the company’s recent 8-K filing with the Securities and Exchange Commission. On May 6, 2025, iCoreConnect, along with its subsidiary iCore Midco Inc., reached an agreement with PIGI Solutions, LLC, and John Schneller, the defendants in a lawsuit initiated by iCoreConnect on April 4, 2025.

The dispute originated from a finder’s fee agreement, which iCoreConnect claims involved PIGI acting as an unregistered broker-dealer, thus rendering the agreement voidable under Section 29(b) of the Securities Exchange Act of 1934. PIGI had scheduled an auction of iCoreConnect’s personal property to settle a claimed debt of $2,434,243 in principal and interest.

The settlement stipulates that iCoreConnect will pay $3,099,747, which includes the amount owed to PIGI and related auction expenses, as well as $50,000 to the bidder of the assets. This payment must be completed by May 30, 2025, to prevent the auction. In exchange, the lawsuit will be dismissed with prejudice, and all parties will grant mutual releases.

This agreement allows iCoreConnect to retain control of its assets, averting the planned auction set to occur post-May 9, 2025. The company has confirmed its intention to meet the financial obligations of the settlement before the end of May. InvestingPro analysis indicates that iCoreConnect’s overall financial health score is rated as WEAK, with 12 additional key insights available to subscribers regarding the company’s financial position and market performance.

The information in this article is based on a press release statement.

In other recent news, iCoreConnect Inc. has been granted an extension by the NASDAQ Stock Market to meet listing requirements, allowing the company until May 15, 2025, to file its overdue annual report for the fiscal year ended December 31, 2024. This extension follows a series of compliance issues, including failure to meet minimum stockholders’ equity and timely filing requirements. Additionally, iCoreConnect is involved in a legal dispute with PIGI Solutions, LLC, which claims the company owes over $2.4 million. iCoreConnect is contesting this claim and has taken legal action against PIGI, seeking to halt an auction of its assets. In a strategic move, iCoreConnect has entered a Channel Partner agreement with Florida Merchant Services to enhance operational solutions for dental practices. The company also recently canceled warrants for purchasing 142,690 shares of its common stock to avoid potential dilution. This decision aligns with iCoreConnect’s strategic initiatives to maintain a stable equity base. These developments are part of the company’s ongoing efforts to address financial and operational challenges.

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