TTLN News (2) Dec 8th 1999
(Applies to: TTLN)
IGC REJECTS TOTAL ENTERTAINMENT SETTLEMENT OFFER AND VOWS TO ACTIVELY
PURSUE ITS PENDING LEGAL ACTION
PLYMOUTH MEETING, Pa., Dec 8, 1999 /PRNewswire via COMTEX/ --
Interactive Gaming & Communications Corporation (IGC) (OTC Bulletin
Board: SBET) announced today that it has rejected an offer put forth
buy Total Entertainment, Inc. (OTC Bulletin Board: TTLN) to settle out
of court, Interspheres' pending lawsuit in the Superior Court of
Montreal, Canada, against Sandy Masseli, Alex Kennedy, Steven Savage,
Intercapitol Canada, Ltd. and Intercapitol Global Funds, a wholly-owned
subsidiary of Total Entertainment. The legal action against the
Defendants is for punitive damages and loss of revenue based on
Defendants' unauthorized use and possession of IGC's gaming software,
code and corporate documents.
On October 4th, 1999 TTLN issued a misleading press release stating
that "Court Rules in Favor of Total Entertainment, Inc." and that " ...
the court dismissed IGC's claim that TTLN and its wholly-owned
subsidiaries owed unpaid royalties". The release went on to further
state that, "Total entertainment had terminated its agreement and
renewal options with SBET due to malfunctioning software and technical
support".
The release is misleading in that it gave investors the impression that
the entire case was dismissed and that TTLN had terminated its
agreement with SBET and that SBET was being sued by TTLN. The current
status and facts are as follows. The only court ruling that was made
was that IGC's claim for royalties should be heard by the American
Arbitration Association as was provided under the original license
agreement. Secondly, it should be noted that SBET in fact notified TTLN
it was terminating its license and use of SBET software for numerous
violations and infringements.
Guy St. Germain, counsel for IGC and Intersphere Communications Ltd.,
stated that "On September 30, 1999, the Honourable Justice Nicole
Duval-Hesler of the Superior Court of the province of Quebec,
maintained in part Defendants' Motion to Refer the Matter to
Arbitration. Justice Duval-Hesler's decision was limited to
Intersphere's claim for payment of royalties from Co-Defendant
Intercapitol Global Funds ONLY." He further added, "At no time during
Defendants' Motion to Refer the Matter to Arbitration did Justice
Duval-Hesler ever commented on the merits of the case. As discussed, it
would appear that the decision of Justice Duval-Hesler is procedural in
nature given the fact that Intercapitol Global Funds Ltd. Did not
appear to be an operating entity is of rather minimal significance to
the entire process."
Mike Simone, president of IGC, commented that Arbitration might be
difficult when our license agreement was with a company that apparently
is no longer an operating entity. However, the royalties are an
insignificant portion of the overall legal action against the
Defendants. The offer that was submitted by Total was totally
unacceptable and we will continue to seek resolution through the
courts.
Forward-looking statements in this release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties, including, without
limitation, continued acceptance of the Company's products, increased
levels of competition for the Company, new products and technological
changes, the Company's dependence upon third party suppliers,
intellectual property rights, and other risks detailed from time to
time in the Company's periodic reports filed with the Securities &
Exchange Commission.
SOURCE Interactive Gaming & Communications Corp.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: Investor Relations of Interactive Gaming & Communications,
610-941-0305, Ext. 21, or Fax, 610-941-4752, or Email,
investorrelations@igccorp.com
WEB PAGE: igccorp.com
GEOGRAPHY: Pennsylvania
Quebec
INDUSTRY CODE: CNO
MLM
SUBJECT CODE: LAW
|
