Re: 5/5 - 9/17/00 - [CGYC] CGYC settles class-action lawsuit for $2.25 million
For Immediate Release
Press Contacts:
Lowel Farkas
Carnegie International Corporation
(410)785-7400
lfarkas@carnegieint.com
David A. Kaminer
The Kaminer Group
(914)684-1934
daminer@kamgrp.com
Carnegie International Files to Dismiss Shareholder Suit, Prepares to File Against Grant Thornton LLP
Company Comments on Shareholder Suit Against Grant Thornton
BALTIMORE, Maryland, May 5, 2000 -- Carnegie International Corporation said today that it will file a Motion to Dismiss the first amended Consolidated Complaint (filed March 21, 2000) brought against the company and several of its officers and directors by certain of its shareholders.
Carnegie said that, among other issues, the Motion to Dismiss states "the consolidated complaint fails to state a cause of action upon which relief may be granted, and fails to state with particularity facts giving rise to a strong inference that any defendant acted with the state of mind required to prove a violation of § 10(b) of the Securities Exchange Act of 1934 and the Securities Exchange Commission Rule 10-B; it fails to state with particularity each statement alleged to be misleading or to set forth in detail the reasons why each such statement is supposedly misleading; and, to the extent that the Consolidated Complaint makes allegations based upon the plaintiff’s information and belief, it fails to state with particularity the facts on which any of those beliefs are purportedly formed."
The company noted that litigation is always subject to uncertainties, which are outside of its control. Hence, although it believes its Motion to Dismiss the Consolidated Complaint makes a compelling argument, it cannot, with any reasonable degree of certainty, state whether it is likely or unlikely to be granted. The complaint may be found in its entirety at Carnegie’s Web site (www.carnegieint.com).
Actions vs. Grant Thornton
Carnegie also announced that it has retained the law firms of William H. Murphy, Jr., and Associates P.A. of Baltimore, and Gary, Williams, Parenti, Finney, Lewis, McManus, Watson and Sperando of Stuart, Florida, who are preparing to file suit against Grant Thornton LLP, the company’s former independent auditor, as well as several Grant Thornton partners and employees.
The company also stated that certain of its shareholders have filed a class action complaint against Grant Thornton, LLP. The suit was filed on April 28, 2000, in the United States District Court for the District of Maryland, and alleges that Grant Thornton violated Federal securities laws while serving as Carnegie’s independent auditor. The suit further alleges that the company’s financial statements for fiscal years 1997 and 1998, prepared by Grant Thornton and which received unqualified opinions from Grant Thornton, were not in compliance with Generally Accepted Accounting Principles (GAAP), as Grant Thornton had opined. Carnegie International Corporation is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI.
MAVIS is a trademark of Carnegie International Corporation. Other trademarks are properties of their respective owners.
Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this Press Release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors.
carnegieint.com
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For Immediate Release
Press Contacts:
Lowel Farkas
Carnegie International Corporation
(410)785-7400
lfarkas@carnegieint.com
David A. Kaminer
The Kaminer Group
(914)684-1934
daminer@kamgrp.com
Carnegie International Corporation Files $2.1 Billion Suit Against Grant Thornton, LLP, for Fraud, Negligence and Defamation
BALTIMORE, May 23, 2000 -- Carnegie International Corporation (OTC BB: CGYC) and two of its officers today filed a $2.1 billion lawsuit against Grant Thornton, LLP, one of the largest accounting firms in the country, alleging fraud, negligence, intentional interference with business relations, fee-gouging, breach of contract, and defamation.
The suit was filed in the Circuit Court for Baltimore City by Carnegie’s nationally-recognized trial attorneys, William H. Murphy Jr. of Baltimore, and Willie E. Gary of Stuart, Florida. Carnegie is an Internet support and computer telephony holding company based in the Baltimore suburb of Hunt Valley.
The suit alleges that Grant Thornton solicited Carnegie to engage Grant Thornton, LLP to provide auditing and accounting services to its corporation, only to later negligently perform the work for which it is noted. The suit further alleges that:
-- Grant Thornton’s negligence caused the halt of trading -- and ultimately de-listing -- of Carnegie’s stock from the prestigious American Stock Exchange;
-- Because of Grant Thornton’s fraud and negligence, Carnegie’s market capitalization tumbled, which impacted shareholder value and also prevented the company from undertaking market rate financings and expansion-minded acquisitions;
-- As a result of Grant Thornton’s negligent, fraudulent and malicious conduct, Carnegie Chairman E. David Gable and President Lowell Farkas suffered irreparable harm to their reputations.
William Murphy, a former Baltimore City Circuit Court Judge, recently won the exoneration of Don King and Don King Productions from federal insurance fraud charges, and was a member of the legal team that recently won a $185 million dollar settlement in a lawsuit for negligence and malpractice against the accounting giant Ernst & Young, LLP.
Willie Gary is well known for the $500 million dollar verdict he won in Jackson, Mississippi, against a Canadian funeral home chain, and for numerous other multimillion dollar verdicts and settlements. The Mississippi verdict remains one of the largest cash awards in U.S. history. He currently represents numerous employees in a multi-million dollar lawsuit against the Coca-Cola® Company (NYSE: KO), and has also filed a multi-billion dollar lawsuit against the Burger King® Corporation.
Carnegie International Corporation (OTC BB: CGYC, www.carnegieint.com) is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI. Its primary wholly-owned subsidiaries include: RomNet Support Services, Inc., an Internet, e-business and technical support services company, Profit Through Telecommunications (Europe) Ltd. (PTT), a telecommunications software company providing business solutions utilizing proprietary speech recognition, touch tone and bar code responses to send and/or receive information; ACC Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone systems from Comdial™, SONY® and Sprint®; Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice mail technologies and products, and Paramount International Telecommunications, Inc., of Vista, California, which serves hotels and other businesses, primarily in 0+/- call auditing and international one-plus sectors
carnegieint.com
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For Immediate Release
Press Contacts:
Lowel Farkas
Carnegie International Corporation
(410)785-7400
lfarkas@carnegieint.com
David A. Kaminer
The Kaminer Group
(914)684-1934
daminer@kamgrp.com
Carnegie International Settles Class Action Suit
BALTIMORE, September 18, 2000 -- Carnegie International Corporation (OTC BB: CGYC) announced today that has reached an agreement with certain shareholders to settle federal securities litigation.
The settlement allows for a small cash component provided by Carnegie insurer AIG, a warrant package at a strike price of $3.00, and a 3 percent participation by class action shareholders in any recovery that Carnegie may obtain in its suit against its former auditor Grant Thornton.
Carnegie Chairman E. David Gable praised the efforts by all concerned to align the interest of the shareholders with the company. AIG was wonderfully instrumental in helping us to achieve this resolution, along with our lawyer, Chris Ohly of Blank Rome Comisky & McCauley. All parties moved to do what was in the best interest of the company and its shareholders. We are delighted to have this chapter closed in this manner.
carnegieint.com
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For Immediate Release
Press Contacts:
Lowel Farkas
Carnegie International Corporation
(410)785-7400
lfarkas@carnegieint.com
David A. Kaminer
The Kaminer Group
(914)684-1934
daminer@kamgrp.com
Carnegie International Releases Details on Settlement of Class Action Suit
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Settlement Includes $2.25 Million, Warrants, and Stake in Carnegie’s $2.1 Billion Suit Against Grant Thornton LLP
BALTIMORE, September 19, 2000 – Carnegie International Corporation (OTC BB: CGYC) has released more financial information concerning the settling of a class action suit levied by certain shareholders.
Carnegie Chairman E. David Gable said shareholders have agreed to a payment of $2.25 million, to be made by AIG, Carnegie’s insurance carrier. In addition, Mr. Gable said shareholders will receive $3 million in warrants for Carnegie stock, exercisable at $3.00, and confirmed that shareholders will also receive a stake in the company’s $2.1 billion law suit against Grant Thornton LLP, its former accounting firm (see "Carnegie International Corporation Files $2.1 Billion Suit Against Grant Thornton for Fraud, Negligence and Defamation, Business Wire, May 23, 2000).
"Carnegie’s Board, senior management team, employees and our shareholders are glad to put this chapter behind us and to move forward, especially with our corporate coffers intact," said Mr. Gable.
Mr. Gable said Carnegie shareholders’ 3 percent stake in the company’s suit against Grant Thornton, one of the largest accounting firms in the country, is after expenses. The suit alleges fraud, negligence, intentional interference with business relations, fee-gouging, breach of contract, and defamation.
The suit was filed in May 2000 in the Circuit Court for Baltimore City by Carnegie’s nationally-recognized trial attorneys, William H. Murphy Jr. of Baltimore, and Willie E. Gary of Stuart, Florida. The suit alleges that Grant Thornton solicited Carnegie to engage Grant Thornton, LLP to provide auditing and accounting services to its corporation, only to later negligently perform the work for which it is noted.
"With the shareholder suit behind us," said Mr. Gable, "Carnegie can now focus on growing our core business in Internet support and computer telephony, working with our subsidiaries, completing planned acquisitions (see "Carnegie International Extends Closing Dates on Two Proposed Acquisitions," Business Wire, September 11), and working with our outstanding legal team in the Grant Thornton action."
carnegieint.com |
