Optelecom, Inc. Announces That Former Officers of Paragon Audio Visual Ltd. Agree to Settle Charges
GAITHERSBURG, Md., Nov. 22 /PRNewswire/ -- Optelecom, Inc. (Nasdaq: OPTC - news) today announced that it has reached an agreement in principle to settle charges brought by the Company against Paragon's former Chairman and Director, David Brown, and his three sons, Andrew, Mark and Darren Brown.
In a complaint filed November 10, 1999, Optelecom sought and received a Temporary Restraining Order against the Browns as the Company alleged, among other actions, breach of contract, breach of duty, and interference with contractual relations.
As part of the agreement the Browns will return all shares of Optelecom, Inc. issued to them as part of the purchase of Paragon by Optelecom in December of 1997.
The Browns also agree to take immediate steps to cease trading using the name ''Paragon'' or any confusingly similar names, logos, or descriptions of business operations. The agreement is subject to the exclusive jurisdiction of the state of Maryland Courts.
In a separate agreement, the Company and the Browns reached an agreement ending litigation stemming from the dismissal of the Browns during 1998-1999 from Paragon.
''The resolution of these matters to our satisfaction, and to the benefit of our shareholders, marks the end of a difficult period for Optelecom,'' stated Edmund Ludwig, president and CEO, ''This settlement removes obvious obstacles and clears hurdles that impeded Paragon Audio Visual, Ltd. from realizing the potential we envisioned at the time of acquisition. Our ability to produce innovative equipment to Paragon's exacting standards will help Mike Weight, Managing Director, and his Paragon team expand their reach beyond their traditional markets.'' |
