The CrunchPad project was started by Michael Arrington in July 2008, initially aiming for a US$200 tablet, and showed a first prototype (Prototype A) a month later.
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On December 10, 2009 Michael Arrington/Techcrunch filed a lawsuit against Fusion Garage in Federal court.
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Originally, Fusion Garage was working with Michael Arrington to release it as the CrunchPad, but in November 2009 Fusion Garage informed Arrington it would be selling the product alone.