Re: The tale of USAV (now CPXP)
Step One: Go after the people to whom you sold restricted shares
Monday September 27, 12:54 pm Eastern Time
Update On Suit Filed in Federal Court Requesting Cancellation of Shares
LOS ANGELES--(BUSINESS WIRE)--Sept. 27, 1999--CostPlusFive.com Inc. (OTC BB: USAV - news) Monday announced an update as to the status of its lawsuit in Federal District Court for the Central District of California against Investors Equity Corp., Wall Street Trading Group Inc., Western Horizon Inc., Joe Elizondo, and Bruce Dorfman in Case No. 99-06010RAP, requesting cancellation of 2,960,000 free trading shares and 3,280,000 restricted shares of the company, in response to investor inquiries.
The suit was filed on June 11, 1999. On June 11, 1999, a hearing was held on the plaintiff's request for a restraining order, which was denied. At the time, a stop order was already in effect on that stock that the plaintiff was seeking to restrain. A preliminary hearing was set by the court on the relief sought by plaintiff on June 28, 1999.
On June 28, 1999, the court vacated the Order to Show Cause re Preliminary Injunction, and ordered the plaintiff to re-file documents in support of the injunction requested for a hearing on Aug. 18, 1999. The hearing for Aug. 18, 1999 was taken off calendar. On Aug. 6 and 9, 1999 the plaintiff's Request to Enter Default of Defendants Investor's Equity Trading Corp., Wall Street Trading Group Inc. and Bruce Dorfman was filed, and a default was entered against said defendants on Aug. 9, 1999. On Aug. 24, 1999, said defendants filed a Motion to Set Aside the Default, which was granted on Sept. 13, 1999. On Aug. 27, 1999, plaintiff noticed a motion on its request for preliminary injunction, which was taken off calendar by the Court. The matter has been reset for hearing on Oct. 18, 1999. In one of the affidavits in support of the relief requested, Plaintiff attached a shareholder's report dated July 20, 1999, from its transfer agent, indicating that 4,626,075 free trading shares were outstanding, and a Sept. 9, 1999 report from Depository Trust Corporation (DTC) indicating 6,058,050 free trading shares outstanding; a discrepancy of 1,431,975 free trading shares.
[Forward looking statement deleted]
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CostPlusFive.com Announces Court Decision
BERMUDA DUNES, Calif., Oct. 26 /PRNewswire/ -- CostPlusFive.com, Inc. (OTC Bulletin Board: USAV - news) has reported that a verdict has been reached in the pending Federal Court case. A Company spokesman stated that Judge Paez declined to grant the restraining order at yesterday's hearing against Bruce Dorfman, Wall Street Trading Group, and Investors Equity. The stop transfers for the shares in question remain intact, and the company feels very confident about the overall outcome in the continuing, and progressing civil suit. This decision comes following the official release of the highly acclaimed HECTOR(TM) (Home Entertainment Computer That Operates Remotely), which represents a revolutionary technological advancement for the Entertainment Industry. Complete information for this finished-product will be available on the company's website, www.CostPlusFive.com, on Wednesday, Oct. 27, 1999. The Company is very excited by the public's initial response to HECTOR(TM), and firmly expects this product to propel CostPlusFive.com to the forefront of its field, as well as increase revenues dramatically.
HECTOR(TM) is currently available only to CostPlusFive.com members. Information about membership, along with the Company's wide array of products and custom built computers can be found at their website, or via phone 888-512-1644, 24hrs/day, 7days/week.
CostPlusFive.com is an Internet e-commerce business specializing in the sale of computers and computer equipment at five percent over cost. For more information, contact CostPlusFive.com Investor Relations representative, Skip Nordstrom, at 800/561-4642.
[Forward looking statement deleted]
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Tuesday December 21, 1:55 pm Eastern Time
CostPlusFive.com, Inc. Discusses Dorfman Action and Chat Room Attack
BERMUDA DUNES, Calif., Dec. 21 /PRNewswire/ -- CostPlusFive.com, Inc. (OTC Bulletin Board: USAV - news) announced today they have uncovered some startling developments concerning their lawsuit against Bruce Dorfman of The Wall Street Trading Group, and concerning Lee Jackson of Houston, Texas.
The company entered into an agreement with Dorfman earlier this year where they were to sell Dorfman stock in CostPlusFive.com, Inc. for approximately $750,000. Mr. Dorfman paid only $110,000 and defaulted on the agreement, so the company filed an action in federal court to either recover the stock or the money owed from the transaction. They also placed stop orders on the certificates in question and additionally sought a Temporary Restraining Order from the court insuring that Dorfman could not circumvent the stop orders and dispose of the stock which he claimed he still had. Dorfman testified under oath that he had not sold any stock at retail, and that he ceased all trading of USAV stock since the day after the lawsuit was filed. He claimed the deal he cut with the company was not being honored.
To the Company's dismay, and even after informing the judge they believed Dorfman would sell the stock through an intricate web of nominees absent formal restraint from the court, the judge hearing the case declined to issue the TRO. Company counsel has now uncovered proof that Dorfman did, in fact, sell USAV shares prior to his testimony and again immediately after the decision of the judge was announced. Trading records obtained by counsel indicate Dorfman pocketed some $1.2 million in the transaction, and the Company is investigating the allegation that he now has a short position in the stock in an attempt to keep the share price low in case he loses the case against him. Counsel for CostPlusFive.com indicates his client intends to continue the lawsuit and will prosecute it vigorously. The company believes it will eventually get its money, which was, and is, to be used for operating capital and expansion, or it will see its shares returned to the company.
In a separate but, some think, related development, counsel for CostPlusFive.com also indicated he has incontrovertible proof that Lee Jackson, one of CPF's originally designated affiliates, has been the source of a concerted effort to discredit the company by posting negative and, in many cases, false or misleading information about the company in Internet chat rooms. Jackson was a Cyber Exchange franchisee when that organization negotiated an agreement to have its ``assets'' acquired by CostPlusFive.com, Inc. Though it was intended Jackson join the new company, the company withdrew their invitation when gross discrepancies were discovered in financial statements submitted to the company by Jackson through Dorfman.
It has now been determined through the cooperation of the Internet Service Provider and the chat room operator that Jackson has been the source of a constant and unremitting attack on the company, which has caused untold damages to company shareholders. The company has not yet determined what action it will take in light of the evidence recently uncovered.
Company sources indicate the tardy 10-Q filing will be completed and filed soon, after which it intends to publish a letter to shareholders that will seek to more fully explain these developments.
CostPlusFive.com is an Internet e-commerce business specializing in the sale of computers and computer equipment at 5 percent over cost. Its courier company acquisition is intended to provide better service turn-around times as well as faster delivery of products ordered on-line. The company was recently featured as a leading on-line retailer on the Mark Hamill-hosted ``dot com'' show on CNBC.
CostPlusFive.com recently introduced a new home or home office PC it calls HECTOR(TM) that also performs nearly every home entertainment function imaginable. Visit the company's website at www.costplusfive.com and see the amazing HECTOR.
For more information on the company, contact CostPlusFive.com Investor Relations representative, Skip Nordstrom, at (714) 751-7547.
[Forward looking statement deleted]
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Wednesday January 26, 10:04 pm Eastern Time
Judge Rules in Favor of CostPlusFive.com, Inc.
BERMUDA DUNES, Calif., Jan. 26 /PRNewswire/ -- CostPlusFive.com, Inc. (OTC Bulletin Board: USAV - news) today announced rulings of the federal court on two pending motions in the case of CostPlusFive.com, Inc. vs. Investor's Equity Corp., et. al. (99-06010RAP).
Defendants Investor's Equity Corp., Wall Street Trading Group, Inc., and Bruce Dorfman's motion to stay the case pending arbitration between said defendants and co-defendant, Western Horizon, Inc., was denied. CostPlusFive.com, Inc. prevailed on its Motion for Judgment on the pleadings against the named defendants on their counterclaim, the judge ruling that defendants failed to state a claim for defamation or securities fraud against the company, dismissing those claims, and giving defendants up to an including February 18, 2000 to amend their counterclaim. A mandatory status conference and voluntary settlement conference was set for February 28, 2000.
Commenting on this development's significance, company president, Frank Scivally, said, ``We told our shareholders last month that we would pursue this matter, and we are doing exactly that. We either want our stock returned to us or more than $600,000 we feel is owed to our company. In either case, our shareholders are going to win. This ruling tells us the court wants matters to move along towards settlement, and we are delighted.''
For more information on the company, contact CostPlusFive.com Investor Relations representative, Skip Nordstrom, at (714) 751-7547.
[Forward looking statement deleted]
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Friday February 11, 3:34 pm Eastern Time
COSTPLUSFIVE.COM, Inc., Investor's Equity, Wall Street Trading Group and Bruce Dorfman Announce Settlement of Lawsuit
BERMUDA DUNES, Calif., Feb. 11 /PRNewswire/ -- COSTPLUSFIVE.COM, Inc. (OTC Bulletin Board: USAV - news), Investor's Equity Corp., Wall Street Trading Group, Inc. and Bruce Dorfman jointly announced today that CostPlusFive.com, Inc.'s federal lawsuit, Case No. CV99-06010 RAP(MANx), has been settled, and of the parties will be dismissed from the lawsuit. The terms of the settlement agreement are confidential. The Company is pleased with the settlement and looks forward to dedicating 100% of its focus toward the business of CostPlusFive,'' remarked Company President, Frank Scivally.
[Forward looking statement deleted]
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All PRs can be found at:
nicstock.com
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Step Two: Go after the "bashers"
BERMUDA DUNES, Calif., March 30 /PRNewswire/ -- COMPUTERXPRESS.COM, Inc.
(OTC Bulletin Board: USAVE - news), announced today that, on March 30, 2000, it filed a lawsuit for $1 million in actual damages and for punitive damages in excess of $60 million against Lee Jackson, Barbara Jackson, Tom Mitchell, Doran Mitchell, John Fecteau, Carol Fecteau, Paul Graham, and Wendy Graham, in Riverside County, California, Case No. RIC341013, alleging fraud, negligent misrepresentation, negligence, trade libel, tortious interference with contractual relations, tortious interference with prospective economic advantage, abuse of process, conspiracy, and injunctive relief.
The complaint filed in Superior Court, alleges, among other things, that, since August, 1999, defendants have, under the fictitious names, ``undestone'' and ``ogravity,'' been publishing false and disparaging statements about the Company and its officers and directors on the ``Raging Bull'' chatroom and on their own website on the Internet, with the specific intent of damaging the trade name and reputation of the Company. It further alleges that the defendants went even further and actually deterred customers from buying the Company's products, dissuading investors from investing in the Company, filing a false complaint with the Securities and Exchange Commission, and interfered with a large order, causing the cancellation of that order.
The lawsuit also alleges that Jackson, Mitchell, Fecteau and Graham fraudulently represented that they were the owners of a profitable and solvent business to merge with the Company, when, in fact, their businesses were insolvent. ``The last thing we want is to be involved in another lawsuit,'' said Company President Frank Scivally, ``But we have to protect the Company's integrity, as well as our investors. Several of these investors have stated their displeasure with what has been perceived as passivity on the part of the Company concerning 'undestone' and 'ogravity.' We believe that avoiding a lawsuit makes smart business sense in general, but, when people begin to make a career out of defaming the Company, the Company felt it had no choice but to prosecute the offenders,'' Mr. Scivally said. ``We want out investors to know that we are doing this for the Company and see it as a positive step forward.''
ComputerXpress.com, Inc. is an Internet e-commerce and ``business to business'' Company, specializing in the sale of computers and computer related equipment at reasonable costs.
[Forward looking statement deleted]
SOURCE: ComputerXpress.com, Inc.
ragingbull.com
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Comprehensive DD on USAV is documented at:
geocities.com
See also:
ragingbull.com
- Jeff
P.S. My opinion for step three: "bashers" win! :) |
