Tuesday July 24, 11:14 am Eastern Time
Press Release
SOURCE: Bristol
via BCE Emergis e-News Services
Court Upholds Bristol's Fraud, Breach of Fiduciary Duty and Unfair Business Practices Allegations Against JAWZ and Corporate Officers
Los Angeles, California
At a hearing on July 23, 2001, the Los Angeles County Superior Court upheld claims for Fraud, Breach of Fiduciary Duty and Unfair Business Practices against JAWZ Inc. (Nasdaq:JAWZ - news), its current Chief Executive Officer, Robert Kubbernus, and its former Chief Financial Officer, Riaz Mamdani. The case against JAWZ and its officers is being pursued by Bristol Asset Management LLC, an early JAWZ investor.
The lawsuit arose after JAWZ entered an agreement with Bristol in April of 1999. The agreement provided Bristol with warrants for 1 million shares of JAWZ stock. Bristol tendered full consideration for the shares in April of 2000.
In response, Kubbernus claimed that the company's investment bankers were not comfortable with the number of shares Bristol owned, and then JAWZ refused to deliver any stock certificates. Even before then, JAWZ failed to comply with a number of other provisions in the warrant agreement. Bristol is seeking damages in excess of $14 million, as well as punitive damages.
Bristol's Complaint was amended recently, and Mamdani was added as a Defendant. At a hearing on July 23, Mamdani, Kubbernus and JAWZ argued that the claims against them should be dismissed. The Court disagreed and set the case for trial on Jan. 15, 2002.
CONTACT: Gray Gieleghem & Seltz LLP
J. Neil Gieleghem/Thomas P. Seltz, 310/552-1047
SOURCE: Bristol
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