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Path.net over $1 Million in Debt - New Court Documents Reveal the Details
The drama with Path never ends.
We all remember the major downtime of Path.net that hit multiple of their locations across the globe. Now, newly released documents shed even more light on the situation, and it’s not pretty.
It turns out that, aside from struggling to pay their datacenter bills, Path also “forgot” to pay for their leased hardware. Yes, you read that right: Path/Tempest didn’t own their hardware, they leased it.
Case history: https://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseInfo.asp?caseNumber=CV2025-027770
The released documents can be downloaded here
Not only were they leasing the hardware, but they also stopped paying for it for over a year now! The debt has now reached a staggering $1,096,313.34 USD owed to Data Sales.
Some spicy content:
Since Phoenix went offline months ago, customers there have been completely locked out of their data. And based on these documents, it’s likely they’ll never see it again, the servers in Phoenix are also part of this same lease contract and I wonder if these were not just seized already.
Grab some popcorn and read through the files, this is going to be interesting.
Comments
Im going to need a bigger bag of popcorn today the hits keep on hitting
important news dont miss
this is me pretending to be surprised
Can someone tag the dude that was defending Path with their node location and all being fine. I forgot his name.
I'm shocked that paying to put your logo on a F1 car didn't 10X revenue.
who is Path.net ?
is it
is it
@emgh
That's an easy million right there on that sticker price
Damn, you quoted me before I updated the image to where you can actually see the logo.
But yeah, couldn't have been cheap.
$1,096,313.34 USD for 40 E3 servers with 16 GB of RAM? The math ain't mathin'
Also isn't September 2024 more than 3 years after the initial lease date? Let me read the documents...
They leased far more than just 40x12 blades. Read the documents and you will see the amazing business decisions they made.
I believe they totally had to pay 300K for those (new) blade systems that were originally released 10 years earlier or something.
I started going through and writing up a list of inventory before I realized it was futile because there are over 200 pages of leased equipment (Exhibit R, so assuming 17 leases). A bunch of the assets are cross-pledged, so defaulting on one lease is a domino in this case.
Also to note: they're asking for $1.4 million as they want $305,000 in damages, additional interest, and legal fees.
Yes, they agreed to pay $1,500 a month for 36 months for the 40 blades. Coming out to a little over $3 per server per month. I mean, definitely seems expensive because I can go buy 40 of these for $32,000 right now but I don't know what they were priced at 3 years ago. Probably not more than $75,000 though...
Any comments on this @KyanG7?
Is this some temporary glitch when you had while moving your POPs?
Can someone that knows more about USA invoices tell me how the hell you pay 10 x Shipping and 10 x Custom 1U while having only 1 mobo?!
I would say that means 10x1U systems each with the following hardware.
It could have been made clearer, but I have already seen similar invoices in Germany
Everything between PCN Customized 1U System and Shipping to LA are the parts used in each 1U System. It's just written in a funny way in this document.
Exactly. Probably registered with a price of $0, PCN Customized 1U System probably has the total price of of 1 server and the quantity set to amount of servers.
That application from 8/13/2025 is looking interesting 👀
It’s amusing to see that Path is representing themselves instead of hiring a lawyer. I wouldn’t make that choice if someone were suing me for a million dollars.
@KyanG7 how come this is the case then?
@interservermike might wanna switch while you can
thats the wrong path they've chosen!
Links to full court documents removed as they’re not publicly available and contain personal details of employees that would not otherwise be on the internet.
what
are you sure
someone leaked them?
Nope, he's wrong. They are part of the public record and anyone can get a copy from Maricopa County's clerk
Case: Data Sales Co Inc v. Path Networks Inc CV2025-027770
https://www.clerkofcourt.maricopa.gov/records/obtaining-records
Yep, that's what I thought
Public record from a court and posting on LET are two wildly different things. LET isn’t about doxxing people. OP is fine to post a version with personal details of employees redacted.
blessed
You just said they weren't public
They were
Now you're changing why they were removed
Can I think to any public company who has name of their staff on their website?
This is a dumb rule
This is not correct. These documents are publicly available. See @filtered his response.