ANDR<-------------SCUM STOCK!!!!! LAWSUIT MONEY LAUNDERING!!!!
Part II. Other Information
Item 1. Legal Proceedings
Morton International, Inc. v. A.E. Staley Mfg. Co. et al. and
Velsicol Chemical Corp. v. A.E. Staley Mfg. Co. et al
As originally reported in the Company's Form 10-K for the year ended February
28, 1997, in July 1996, two companion lawsuits were filed in the United States
District Court for the District of New Jersey, by various owners and operators
of the Ventron-Velsicol Superfund Site (Site). The lawsuits, which were
subsequently consolidated, were filed under the Comprehensive Environmental
Resource Compensation and Liability Act (CERCLA), the Resource Conservation and
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Avisma Titano - Magnesium Kombinat v. Dart Management, Inc.,
Andersen Group, Inc., Francis E. Baker et al
On August 18, 1999, Avisma Titano - Magnesium Kombinat ("Avisma"), an industria
company located in Berezniki, Sverdlovsk, Russian Federation, and organize
under the laws of the Russian Federation, filed suit in the United State
District Court in New Jersey against numerous shareholder parties, including
among others, the Company and the Company's Chairman, Francis E. Baker
Recently, on December 10, 1999, Avisma filed an amended Complaint in which
among other things, the Company was dropped from the lawsuit and is thus n
longer a party defendant. Mr. Baker, who also serves as a Director of th
company, remains a named defendant.
The suit purportedly seeks to recover in excess of $150 million in damage
allegedly arising out of harm allegedly caused by fraud and "money laundering"
that is, in which it was claimed that funds were purportedly misappropriate away from Avisma for the benefit of the Western-based investor group of which
the Company and certain Directors are a part. The Company and Mr. Baker have
denied any and all wrong doing alleged by the plaintiff and believe that this
lawsuit was and continues to be motivated for purposes of using inflammatory
allegations in the U.S. to gain some kind of "leverage" in on-going business
relations in which the investors are seeking to bring Western-style accounting
and management controls to and for the benefit of the Russian company and its
shareholders.
As previously disclosed in various of its filings with the Securities and
Exchange Commission, both the Company and Mr. Baker, along with other members of
the Company's Board of Directors, made an investment in Avisma, and, by virtue
of the merger of Avisma into another Russian Federation corporation (namely,
"VSMPO") in 1998, currently still holds a small, minority investment interest
through the holdings of VSMPO stock. |
