Softlink update->On April 9, 1999, the Securities and Exchange Commission issued a formal
Order Directing Private Investigation and Designating Officers to Take Testimony
in the Matter of Softlink, Inc. and Certain Other Companies.
The private order empowers the SEC enforcement staff to investigate whether
inChorus.com, its employees or associates:
- made misleading statements regarding projected financial revenues of
inChorus.com;
- purchased or sold securities of inChorus.com while in possession of
material non-public information; and
- offered or sold securities through the use or medium of prospectuses
or similar means while no registration statement was in effect.
The private order also authorizes the staff to investigate possible similar
violations by another unrelated, unaffiliated company.
In connection with the private order, the SEC has issued a subpoena duces
tecum to which we have responded. On January 7, 2000, the SEC issued subpoenas
compelling the testimony of Mr. Johnson Lee, a member of our board of directors
and our Chairman, Mr. William Yuan, a member of our board of directors and our
Chief Executive Officer and Mr. Edmund Leung, a member of our board of directors
and our Chief Technical Officer and Secretary. All of these individuals complied
with the subpoenas and are cooperating with the SEC in connection with this
matter. Additional testimony of Mr. 19
Johnson Lee and Mr. William Yuan had been scheduled to be taken the week of
September 18, 2000, but have been adjourned by the SEC staff without an
adjourned date at this time.
The SEC has not advised us that inChorus.com, our employees or affiliates
are presently or will be the subject of any enforcement action by the SEC. To
the best of our knowledge, there are presently no other material pending legal
proceedings to which we or any of our subsidiaries is a party or to which any of
our property is subject and, to the best of our knowledge, no such actions
against us are contemplated or threatened.
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