New details emerge in the Ellen DeGeneres dog adoption fiasco.

Weigh in on Ellen's dog adoption drama

Just in: The attorney for Mutts & Moms tells ET that ELLEN DeGENERES' formerly adopted dog has been placed in a new home.

On her show Wednesday, Ellen addressed the importance of micro-chipping pets to insure proper ownership. She contends that the reason she cannot claim ownership of her adopted dog, IGGY, is because his identity chip was still registered to the rescue agency.

Sources tell ET that while the agency claims Ellen broke her contract by giving him away to a trusted co-worker, the Mutts & Moms owners themselves have not followed all the rules set by their company. They allegedly did not require Ellen or her partner PORTIA DeROSSI to fill out an application, nor did they change the registered owner information as they said they would.

Additionally, it is said the contract in question does not contain an age clause, another reason given by Mutts & Moms for taking back the dog.

Our sources also tell us the family Ellen gave the dog to -- her hairdresser, her husband and their two pre-teen daughters -- did fill out an application online when the dog took up residence with them. It was at that time the agency said they would come out to inspect their property as part of the adoption process. Instead, they reclaimed the dog and calling the police. As Mutts & Moms were officially registered as the owners by the chip, authorities turned over custody to them.