The Entertainment Internet, Inc. Resolves Investor Lawsuit
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LOS ANGELES--(BUSINESS WIRE)--July 10, 2000--The Entertainment
Internet, Inc. (TEI) (EQS:EINI) confirmed resolution of an investor
lawsuit (Subbiah, CV99-11472SWV) filed against TEI and its subsidiary
corporation during 1999.
Resolution was achieved Friday through a tiered agreement that
allows TEI considerable time to continue its turnaround efforts
without the burden of payment obligations left by prior management of
its subsidiary corporation, Only Multimedia Network, Inc. (OMNI).
TEI Chief Operating Officer Jeremy Schuster served as litigation
counsel in the Federal court action, which involved an investment unit
sold by OMNI to an accredited investor during 1996. According to
Schuster, the litigation was "a contentious battle" that ended
favorably and with respect for the corporation's turnaround plans.
TEI Co-chairman Mohamed Hadid said the claim resulted from "the
unfortunate legacy of debt left by prior OMNI management" that he and
Mr. Schuster have been working to restructure and eliminate. Mr. Hadid
added that he is "looking forward to concentrating efforts on growth"
as the corporation moves forward.
TEI's payment obligations under the resolution agreements do not
commence until after approval by the Court. Additional details are
expected to be disclosed in the corporation's next quarterly filing
with the Securities and Exchange Commission.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This release contains forward-looking statements
involving risks and uncertainties that may cause actual future events
or results to differ materially and adversely from those described in
the forward-looking statements. Important factors that may cause such
a difference for The Entertainment Internet Inc. include, but are not
limited to, risks of delays in preparation and introduction of new
services; dependence on outside and third-party service providers,
consultants, and attorneys; dependence on third-party software
developers for a significant portion of new products and services;
risks of rapid technological change and platform change; intense
competition; risks of product defects; dependence upon licenses from
third parties; risks associated with present and future capital
requirements; dependence upon key personnel, and risks associated with
domestic business, intellectual property disputes and other factors
discussed in the company's filings from time to time with the
Securities and Exchange Commission. The Entertainment Internet Inc.
disclaims any obligation to revise or update any forward-looking
statement that may be made from time to time by it or on its behalf.
CONTACT: The Entertainment Internet, Inc.
Elizabeth Cantu, 323/857-9820
info@eini.net |
