Bob, HTSF issues a PR about the SEC action:
Tulsa, Okla.- (BUSINESS WIRE) - September 7, 2000 - Heartsoft, Inc. (OTC
BB: HTSF) reported today that the Company had reached a settlement with
the Securities and Exchange Commission stemming from an investigation
which began in 1999. The investigation centered around the accuracy of the
wording of certain press releases issued by Heartsoft during the first
quarter of 1999, as well as other matters.
The Company had reported in its Form 10-KSB for the period ended March 31,
2000, the SEC investigation and the likelihood that a lawsuit would be
filed by the SEC. This settlement concludes that matter.
In agreeing to the settlement announced on Wednesday by the Securities and
Exchange Commission, the Company and two of its senior officers neither
admitted nor denied any wrongdoing.
"We deeply regret any actions which resulted in the SEC investigation and
the subsequent settlement. We are, however, pleased to finally have this
matter behind us. Everyone at Heartsoft is excited about focusing all of
our available resources on completing Internet Safari(TM), our new
patent-pending Internet browser for children," said Benjamin Shell,
Heartsoft Chairman and CEO.
Under the terms of the settlement which had been previously approved by
both the SEC and Heartsoft, the SEC filed a complaint against the Company
in U.S. District Court in Tulsa on September 5, 2000. The complaint was
filed simultaneously with certain stipulations and consents as well as
agreed final judgments which also had been approved by the SEC and
Heartsoft prior to the final settlement. The Company expects that these
stipulations and consents will be accepted by the Court and that the
agreed final judgments will be entered resolving the lawsuit and
implementing the settlement.
The complaint also named Benjamin P. Shell, Chairman of the Board,
President and Chief Executive Officer of Heartsoft, and Jimmy L. Butler, a
director and Vice-President of Heartsoft, as defendants. Under the terms
of the stipulations and consents and the agreed final judgments, the
Company, Mr. Shell and Mr. Butler would be permanently enjoined from
committing violations of certain securities laws and Mr. Shell and Mr.
Butler would individually pay disgorgement of certain trading profits,
interest and civil penalties totaling $146,402.99 and $129,850.94,
respectively. The Company and Messrs. Shell and Butler neither admitted
nor denied any of the allegations in the complaint filed by the SEC.
About Heartsoft, Inc.
Heartsoft, Inc. publishes and distributes Internet and multimedia
educational software products for early-learning students to schools and
homes nationwide. The Company has reported that it currently developing a
secure children's Internet browser which incorporates advanced image
analysis software capable of detecting pornographic images transmitted
over the Internet. The Company has filed for patent protection of its
pornographic image detection software with the U.S. Patent and Trade
Office, and such patent is currently pending. |
