VPL Medical given till May to get profitable
VPL Medical has been given till May to get profitable.
As per an April 2nd order,
the Receiver (will) no longer be authorized to fund VPL operations out of funds designated for consumer redress after this month.
The order follows the FTC’s revelation that VPL is blowing through $200,000+ in Receivership funds a month.
In order to avoid what will likely be a shutdown, over the next month VPL has to
confirm contracts, acquire additional sources of funding, and/or reach some resolution that would take VPL out of the Receivership imposed on Cardiff and any entity that he controls under the Preliminary Injunction.
Considering VPL has failed to acquire a single contract for over six months, this seems unlikely.
Outside funding is a possibility, although sinking $200,000+ a month into a sinking ship strikes me as a tall ask.
If no material changes to VPL’s profitability or funding or Cardiff’s involvement arise before the next status conference, the Court will order the Receiver to cease funding VPL operations effective on 5/14/2021, although VPL will remain free, as it is now, to pursue outside funding to continue its business.
Last September Jason Cardiff dodged prison on a contempt charge, because his involvement in VPL had ‘the potential to provide additional funds to be put towards recovery.’
As of late March 2021, VPL has instead blown a further $1.2 million hole in frozen funds intended for consumer redress. What a joke that turned out to be.
Looking forward the parties have been directed to file a Joint Status Report by April 30th.
Based on that report, the future of VPL will be decided via a status conference on May 7th.
I’ve scheduled are next calendar docket check for May 1st.