Well if it's a lawsuit by the Attorney General then RN should be worried, but if it's just a suit by restaurant trying to get out of repaying (or allegations by other creditors in a restaurant bankruptcy case) then they might be ok. I remember seeing a newspaper correction retracting its characterization of idine money as a "loan" to the restaurant. There was some strange term for it instead. At the time I wondered why someone (presumably iDine) would care enough to insist on a correction.

I wonder if RN's auditors viewed the risk of this suit to be material and therefore made it a foonote to the 10-Q or 10-K.

My gut feeling is that if payday loans at massive effective rates, and those H&R Block refund advances, are legal in California, then the iDine program will probably be ok, though maybe there will be higher litigation expenses in their future.

Anyone know what the forum-selection clause in the iDine agreement specifies as the governing state law?