INTERNET--(esecurities.W)--May 15, 1999 - Riddell's May 20 Annual Meeting.
AS A MATTER OF RECORD Riddell dated and signed their fiscal 1998 Form of Proxy ("PROXY") [governed by SEC Form DEF14/A] on April 19, 1999. esecurities corporation, a beneficial shareholder of (AMEX:RDL) [pursuant to and in reliance of certain representations reL DawnTreader Fund/Data Broadcasting Corp in re: RiddellSports.com (above)] received said PROXY ~the last few days of April/the first couple of days of May 1999...only to find out that there was to be an Annual Meeting in approximately two (2) weeks, wherein Robert Nederlander, Chairman of the Board, RDL, urged shareholders to "...promptly date, sign and mail the enclosed proxy using the enclosed envelope...". Said April 19, 1999 dated and signedRDL shareholder "PROXY" mailing was also accompanied by RDLs 1998 Annual Report, wherein Rober Nederlander, Chairman; David Mauer, President and CEO; and Jeffrey Webb, Vice Chairman stated "...In February of 1999, the Company entered into a letter of intent with Data Broadcasting Corporation and Dawntreader Fund I, LLP to form a joint venture to communicate with our customers, market our brands and products and sell advertising space on the Internet. Our vision for the Internet is to take our knowledge of the various youth sports and collectible communities and provide content on the Internet that enriches our consumer's activites...We believe that the joint venture will be able to draw large numbers of participants to our site and therefore facilitate commerce for own own brands as well as for others. With our direct sales organization, large summer camp enrollment and our cheerleading and dance competitions on ESPN, we can readily generate initial awareness of the web site in an efficient manner and cross market between the web site and our direct selling effort..."
esecurities corporation and beneficial shareholder (AMEX:RDL) further engaged in the following correspondence by and between David Groelinger, CFO, (AMEX:RDL) specifically pursuant to said ("JOINT VENTURE") from March 30, 1999 through April 30, 1999, two emails, of which were never acknowledged, as follows:
From: David Groelinger
To: networth@esecurities.com
Subject: RiddellSports.com
Date: Tuesday, March 30, 1999 9:20 AM
Negotiations to finalize our letter of intent are continuing without difficulties.
> From: Channel W(tm) Broadcasting Network(tm)
> To: David Groelinger
> Subject: IMPORTANT! Re: RiddellSports.com
> Date: Wednesday, March 31, 1999 3:02 PM
>
> In Re: quote.yahoo.com
>
>
> I appreciate your reply, however, given today's price decline and volume it
> appears something substantive negative? [DBC/DawnTreader breakdown?] is
> pending. Again, please advise.
>
> Thank you.
>
>
> From: Channel W(tm) Broadcasting Network(tm)
> To: David Groelinger
> Subject: Re: RiddellSports.com
> Date: Saturday, April 10, 1999 1:20 PM
>
> Re:
>
> From: David Groelinger
> To: networth@esecurities.com
> Subject: RiddellSports.com
> Date: Tuesday, March 30, 1999 9:20 AM
>
> Again, please advise status of Dawntreader/DBCC alliance re:
> RiddellSports.com. Is this still a go? Said LOI/MOU should simply have
> been nailed down by now one way or another . Accordingly it would seem
> legally appropriate pursuant to SEC Rule 10b-5 that an update should simply
> be forthcoming.
>
> I sincerely appreciate your getting back to me Mr. Groelinger as time is of
> the essence.
>
> [Beneficial] Shareholders (AMEX:RDL)
>
> From: Channel W(tm) Broadcasting Network(tm)
> To: David Groelinger
> Subject: Re: RiddellSports.com
> Date: Friday, April 30, 1999 9:43 AM
>
> In Re:
>
> From: David Groelinger
> To: networth@esecurities.com
> Subject: RiddellSports.com
> Date: Tuesday, March 30, 1999 9:20 AM
>
> >>Negotiations to finalize our letter of intent are continuing without
> difficulties.
>
>
> Please advise status of said "MOA". Time is of the essence.
>
>
> From: David Groelinger
> To: Channel W(tm) Broadcasting Network(tm)
> Subject: Re: RiddellSports.com
> Date: Friday, April 30, 1999 10:25 AM
>
> There is nothing new to report
AS A MATTER OF RECORD RDL terminated said "DAWNTREADER" joint venture five (5) days later, on May 5, 1999 and significantly after said "PROXY" was mailed urging RDL shareholders to promptly date sign and mail. It is our opinion this situation could be actionable in its present state and pursuant to existing issues of facts and SEC Rule 10b-5 including but not limited to Causation, Reliance, etc. In other words non-insider (AMEX:RDL) shareholders were simply allegedly blindsided by said "DAWNTREADER" termination and after yet contemporaneous with said SEC DEF/14 A PROXY mailings and accordant representations made therein.
One of Said "PROXY" items is "Management's nominees for directors, as follows: Kornstien, Mauer, McConnaughy, Nederlander, Schembechler, Toboroff, Webb, and Seessel.
In light of said alleged and possible cause of action and the following 1, 2, and 5 year performance of (AMEX:RDL) vs. S&P 500 unequivocally confirming said Directors/Management/Insider's consistent patterns of shareholder value destruction, we urge all shareholders to vote against Proxy Item 1 i.e. NOT RECOMMEND FOR ELECTING ANY OF SAID DIRECTORS and to further take under advisement possible class action litigation pursuant to said alleged and possible SEC Rule 10b-5 and State Securities Violation(s).
(AMEX:RDL) vs. S&P 500 (1 yr.) quote.yahoo.com
(AMEX:RDL) vs. S&P 500 (2 yr.) quote.yahoo.com
(AMEX:RDL) vs. S&P 500 (5 yr.) quote.yahoo.com
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