Ang,
Message 10131890
Message 9208555
Message 9184409
Hitsgalore.com Board Of Directors Re-Instates
Dorian Reed
Business Wire - July 08, 1999 15:59
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--July 8, 1999--
Hitsgalore.com, Inc. (OTC BB:HITT) today stated that its independent, outside
directors, which comprise 75% of the members of Hitsgalore.com's board,
unanimously agreed to reinstate Dorian Reed as Chief Technology Officer and a
member of the board after a thorough review of all the allegations involving
Reed's supposed involvement of fraud in SEC filing.
The independent directors' conclusion, as reported by Dan Grant, is that "the
statements contained in a May 11, 1999 Bloomberg article about Mr. Reed or
Hitsgalore.com falsifying information in the SEC filing are false and misleading.
The independent directors have carefully reviewed and acknowledges Mr.
Reed's personal issues with the FTC, a civil matter that is now being appealed
by Mr. Reed after he was served this past May with a default judgment. The
committee has also reviewed other disclosures made voluntarily by Mr. Reed,
including those made in the Company's Form 10-K regarding his 1992 criminal
conviction. The independent directors are comfortable with Mr. Reed and his
ability to provide valuable services to the Company."
The independent directors further concluded, "Mr. Reed performed well in
providing a sound direction for the Company, which had lead to the stock
having a market value over $20.00 per share before the false and misleading
statements were made in the Bloomberg article. In addition to being the
developer of the technology behind the Company's successful and profitable
website, Mr. Reed has a solid understanding of the Internet."
"There exists no sound reason for Mr. Reed not to be re-appointed to the
Board. His stepping down in the first place shows his willingness to put the
Company's well-being ahead of his own ego, and also indicates his desire to
clear his name and let us seek the truth in all these matters", said Dan Grant, a
Hitsgalore.com independent board member. Grant continued, "The directors
are pleased that Reed, despite all the controversy, continued to keep
Hitsgalore.com on the cutting edge of technology, with many new Portal
Services and other innovations under development, some of which will be
released soon in a re-designed website."
The Board issued the following statement, "The directors are aware of three
lawsuits filed against Hitsgalore.com in the past few weeks that allege violations
of the federal securities laws and that request class action treatment. Although
we believe that these lawsuits are entirely without merit, we wouldn't be
surprised if there were others similarly based on the misinformation contained in
the Bloomberg article. The recent class action lawsuits filed against the
Company in the United States District Court for the Central District of
California are without merit and appear to be based upon certain false and
misleading statements contained in a May 11th Bloomberg article."
As reported in the Company's June 16, 1999 Press Release, Carl F. Schoeppl,
the Company's attorney hired to defend the putative class action lawsuits,
observed that all three suits appear to be based upon the same factual
misconceptions contained in the May 11, 1999 Bloomberg article.
"Any statements implying that Hitsgalore.com lied about or intentionally failed to
omit the FTC's civil action against Dorian Reed in SEC filings, press releases or
other public statements are simply false," Mr. Bradford, CEO of Hitsgalore.com
declared. "We believe that the Company will be successful in proving the falsity
of the claims that Hitsgalore.com somehow violated the federal securities laws,
both through the defense of the class action lawsuits as well as the successful
prosecution of the Company's recently-filed defamation suit against the
individuals who published and republished these false and negative statements
on the Internet bulletin boards," stated Mr. Bradford.
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