U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report: (Date of earliest event reported) ~~May~~August 2327, 2001

Commission File Number: 000-28251

US DATA AUTHORITY, INC.

a Florida corporation

(IRS Employer Identification Number: 65-0693150)

3500 NW Boca Raton Boulevard
Building 811
Boca Raton, Florida 33431

Securities Registered Pursuant to Section 12(g)
of the Securities Exchange Act of 1934:

Common Stock, Par Value $.02 per share

Item 1. Dispute ~~Change~~with ~~in Control of Registrant~~AT&T.

~~Pursuant~~As topreviously anreported ~~agreement~~on ~~dated~~August ~~May 23~~17, 2001, ~~by and among AB Financial Services, LLC, a Nevada limited liability company ("ABFS") and US Data Authority, Inc. (~~the "Company") ~~(the~~reached ~~"Purchase~~a ~~Agreement"),~~settlement ~~ABFS purchased and will acquire from the Company~~ in ~~two~~its ~~traunches,~~longstanding ~~(i)~~billing ~~12,000,000~~dispute ~~shares~~with ofAT&T ~~Common Stock, par value $~~Corp.02 ~~per share ("Common Stock") and warrants to purchase 30,000,000 shares of Common Stock ("Warrants"), for $600,000 and $20,000, respectively, and (ii) 28,000,000 shares of Common Stock for $4,200,000.~~ The ~~first~~settlement ~~traunch~~ was ~~purchased~~subject ~~on May 23, 2001. Subsequently, on May 23, 2001, ABFS sold 3,500,000 shares of the Common Stock that it purchased in the first traunch~~ to ~~a group of accredited investors. All such purchasers executed a one-year voting trust agreement in favor of ABFS. ABFS may sell in private transactions to accredited investors~~ the ~~right~~execution ~~to purchase shares~~ of ~~Common~~appropriate ~~Stock which ABFS is entitled to acquire in the second traunch~~documents. The USDA Board of Directors, on July 27, 2001, granted ABFS a sixty-day extension to its original June 20, 2001 closing date to complete the purchase of the second traunch. ABFS intends to be the beneficial owner of all such Common Stock.

~~The~~During ~~Common~~August ~~Stock~~20-26, ~~and~~2001, ~~Warrants~~the ~~purchased~~parties bywere ~~ABFS~~unable ~~represent~~to ~~approximately~~agree ~~77%~~to the terms of the ~~issued~~documents designed to evidence and ~~outstanding~~reflect ~~shares~~the ofsettlement. ~~Common~~On ~~Stock~~August 27, 2001, AT&T disconnected the USDA network at all of the 38 locations. On September 7, 2001, the Company filed a Motion to Dismiss AT&T's complaint in AT&T Corp. vs. US Data Authority, Inc., Civ.01-8715, filed by AT&T on August 6, 2001 in the US District Court for the Southern District of Florida. The Company intends to mount a vigorous defense.

~~Robert~~As M.of ~~Beaton~~the date of this report, aover ~~member~~40% of ~~ABFS,~~the ~~has~~Company's ~~been~~customers ~~appointed~~on ~~Chief~~August ~~Executive~~27, ~~Officer~~2001, ofare being served through the Company's utilization of alternative circuits provided by WorldCom, Cable and Wireless and BellSouth Corporation. ~~The~~There ~~Purchase~~is ~~Agreement~~no ~~provides~~assurance that ~~ABFS~~the ~~may~~Company ~~nominate~~will ~~certain~~be ~~persons~~successful in its efforts to ~~the~~reconnect ~~Board~~all of ~~Directors~~its ofcustomers or that the ~~Company~~arrangements inwith ~~order~~these toalternative ~~gain~~bandwidth ~~majority~~providers ~~representation~~will continue uninterrupted.

Joseph E. Shamy, the current President and former Chief Executive Officer of the Company, has agreed, pursuant to the Purchase Agreement, to assign any voting rights with respect to the 1,250,000 shares of the Company's convertible preferred stock that he owns to ABFS for a period of one year. Such shares purport to have ten to one voting rights with the Common Stock of the Company.

The foregoing response to this Item 1 is qualified in its entirety by reference to the Purchase Agreement, Registration Rights Agreement and Voting Trust Agreement, the full text of which are filed as Exhibit 1, 2 and 3 hereto and incorporated herein by this reference.

Item 1. Exhibits.

The Purchase Agreement dated as of May 23, 2001, including Warrants, by and between ABFS and the Company.

The Registration Rights Agreement dated as of May 23, 2001, by and between ABFS and the Company.

The Voting Trust Agreement dated as of May 23, 2001, by and between ABFS and certain private purchasers.

SIGNATURE

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: ~~July~~September 2714, 2001 US DATA AUTHORITY, INC. /Ss/ Dominick F. Maggio Name: Dominick F. Maggio Title: EVP and Chief Operating Officer

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