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MOD Systems will be forced out of its downtown Seattle office space at 1301 Second Avenue, the latest setback for the struggling Seattle startup. A court commissioner ordered on April 22nd that the office space be returned to the Seattle Art Museum and that MOD Systems must pay $175,367 in back rent, attorneys’ fees and unlawful detainer damages.

The King County Sheriff will deliver the writ of restitution in order to execute the transfer to the Seattle Art Museum.

MOD Systems CEO Anthony Bay tells GeekWire that the company has entered into an agreement with the landlord to move out by the end of the month.

“Given the current size of the company, we needed far less space than we have been occupying,” said Bay. “We are moving to offices in Georgetown for the time being and are continuing to operate.”

Earlier this month, GeekWire reported that the Seattle Art Museum sued the company for unpaid rent for January, February, March and April.

Despite raising more than $40 million from the likes of Toshiba and NCR, including a $5 million round last September, MOD’s history has been marred with litigation, controversy and layoffs. The company’s co-founder, Mark Phillips, was convicted last month for wire fraud, mail fraud and money laundering related to his activities at the company.

He is no longer affiliated with the company.

Here’s the court’s order.

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