Re: 5/9/01 - [DGJL/ASTN?] Southridge Capital Management, Cootes Drive, LLC, and York, LLC Sue D.G. Jewelry for Tortious Interference With Contract and Defamation
Southridge Capital Management, Cootes Drive, LLC, and York, LLC Sue D.G. Jewelry for Tortious Interference With Contract and Defamation
LOS ANGELES, May 9, 2001 /PRNewswire via COMTEX/ -- Southridge Capital Management, Cootes Drive, LLC, York, LLC, announced today that on May 4, 2001, they filed a lawsuit in New York County Supreme Court against D.G. Jewelry, Inc., a Canadian corporation (Nasdaq: DGJL chart, msgs), its President Jack Berkovits, and Robert Lowry, a former D.G. Jewelry consultant, entitled Southridge Capital Management, et al. v. Lowry, et al. Among the claims asserted against various of the Defendants are tortious interference with contract and defamation. Those claims based upon the Defendants' efforts to induce numerous companies to breach their contracts with clients of Southridge, an investment advising firm. The Plaintiffs' Complaint alleges, among other things, that Berkovits sent letters to companies with which the Plaintiffs did business falsely informing them that a judgment was entered against Southridge for stock manipulation. The Complaint seeks compensatory and punitive damages, as well as attorneys' fees and costs.
This is the second litigation to arise out of a deal between D.G. Jewelry and a Southridge client. The first, Haymarket v. D.G. Jewelry, resulted in a New York Supreme Court ruling that D.G. Jewelry had breached its contracts with Haymarket. The Court in that case made a specific finding that D.G. Jewelry had failed as a matter of law to present any evidence that Haymarket had done anything improper with respect to D.G. Jewelry's stock.
According to the complaint in Southridge v. Lowry, although Southridge itself was not a party to the Haymarket litigation, Berkovits subsequently sent letters to various companies with which Southridge and its clients conduct business and advised them, inaccurately, that Southridge had been found liable for stock manipulation. The Complaint further alleges that Berkovits' letters, as well as other acts by Berkovits and his co-defendants, caused companies such as Internet Law Library, Inc. (OTC Bulletin Board: ELAW chart, msgs) to default on their contractual obligations to Southridge clients Cootes Drive and York and have harmed the good name and business reputation of Southridge and its clients.
A spokesman for Southridge Capital stressed that the type of conduct exhibited by D.G. Jewelry and the individual defendants is unacceptable. The spokesman further stated that "Southridge and its clients will vigorously pursue anyone who interferes with their business interests or who otherwise spreads defamatory information about them."
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Source: Southridge Capital Management
Contact:
Arlene de Castro of Southridge Capital Management, 284-494-4770
(DGJL ELAW)
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