Pending Litigation:
The following pending legal proceedings were originally reported in the Company's Form 10-KSB for the year ended December 31, 2001, filed on August 20, 2002. These pending legal proceedings are updated as following
In re Eagle Building Technologies, Inc. Securities Litigation
(United States District Court, Southern District of Florida, Civil Case No. 02-80294, filed April 5, 2002)
This Consolidated Complaint was filed in the United States District Court for the Southern District of Florida seeking class action certification for alleged securities violations by Eagle pursuant generally to Section 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 promulgated thereunder. The Complaint generally alleges that Eagle intentionally perpetrated a fraud upon the public by the dissemination of false and misleading information. The Complaint also names as defendants Tanner + Co., Anthony D'Amato, and Paul-Emile Desrosiers. By Order dated July 31, 2002, the Court consolidated this case with other related cases against the Company and appointed certain parties as lead Plaintiffs and their attorneys lead counsel for the class. Accordingly, the following cases were closed by the Court and thus are no longer active cases:
Kelso Capital et al. v. Eagle Building Technologies, Inc.,
Anthony D'Amato, Paul-Emile Desrosiers and Tanner & Co. (Southern
District of Nevada, Civil Case No. CV-S-02-0367-PMP-PAL, filed March 15, 2002)
Alan Davidson and Victor Kashner v. Eagle Building Technologies,
Inc. (United States District Court, Southern District of Florida,
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Case No. 02-80323-CIV-RYSKAMP, filed March 26, 2002)
Inglewood Holdings, Ltd. v. Eagle Building Technologies, Inc.,
and Anthony D'Amato (United States District Court, Southern
District of Florida, Case No. 02-80340-CIV-MIDDLEBROOKS, filed April 16, 2002)
David D. Pain v. Eagle Building Technologies, Inc. and Anthony
D'Amato (United States District Court, Southern District of
Florida, Case No. 02-80372-CIV-HURLEY, filed April 24, 2002)
Jeff Gass v. Eagle Building Technologies, Inc., Anthony D'Amato,
Paul-Emile Desrosiers and Tanner & Co. (United States District
Court, District of Nevada, Case No. CV-S-02-0640-PMP-RJJ, filed May 6, 2002)
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Robert Gluck v. Eagle Building Technologies, Inc. et al. (United
States District Court, Southern District of Florida, Case No. 02- CV-80302, filed April 8, 2002)
Guerrilla IRA Partners, L.P. V. Eagle Building Technologies, Inc.
and Anthony D'Amato (United States District Court, Southern
District of Florida, Case No. 02-CV-80403, filed May 3, 2002
A Consolidated Complaint was filed on October 15, 2002. The Company's response is due on November 29, 2002. Discovery is in its preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Paul-Emile Desrosiers v. Eagle Building Technologies, Inc. (15th
Judicial Circuit in and for Palm Beach County, Florida, Civil Case No. CA 02-03431 AA). This is an action filed against the Company on April 1, 2002, by the former President and Chief Executive Officer of the Company seeking damages in excess of $15,000 for allegedly owed compensation and reinstatement as an officer and director. The Company filed a motion to dismiss five of the six counts in the complaint; the Court heard oral argument on June 28, 2002. On July 25, 2002, the Court dismissed without prejudice the counts seeking declaratory relief and damages for retaliation, while dismissing with prejudice the counts requesting injunctive relief. On or about August 13, 2002, Desrosiers filed an amended complaint seeking declaratory relief and damages. The Company filed an answer denying liability and asserting counterclaims against Desrosiers, generally alleging that Desrosiers defrauded the Company and breached his employment agreement and his duties as a director and as an officer of the Company. Discovery is in its preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Polysolutions Corp. and Bullhide Liner of Broward County, Inc.
v. Eagle Capital International, Inc. (15th Judicial Circuit Court in and for Palm Beach County, Florida, Civil Case No. CA-01- 9017AB). The complaint was filed on September 4, 2001. On or about April 23, 2002, Plaintiffs filed a motion to amend the complaint to name Anthony D=Amato, Ralph Thomson, Richard Lahey, Andros Savvides, Wilfred Mango, Donald Pollack, Robert Kornahrens, Charles Gargano, Samuel Gejdenson, Meyer Berman, Howard Ash, and Bruce Mauldin as individual defendants. The motion remains pending. The Amended Complaint alleges counts for breaches of contract, fraud in the inducement and breach of fiduciary duty. On October 17, 2002, the Company
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filed an answer denying liability and asserting affirmative defenses. Discovery is in the preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Jennifer Nina v. Eagle Building Technologies, Inc. (15th Judicial
Circuit in and for Palm Beach County, Florida, Civil Case No. CA 02-4297AE). This complaint was filed April 10, 2002, alleging claims for unlawful termination, retaliation, breach of contract and unpaid wages, and seeking damages in excess of $15,000.00. On or about May 6, 2002, the Company filed a motion to dismiss certain claims, which alleged retaliatory discharge. The Court, by order entered June 26, 2002, granted that motion, dismissing those claims without prejudice. On July 24, 2002, the Company filed an answer denying liability and asserting affirmative defenses. Discovery is in the preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Julio Cruz, Jr. v Eagle Building Technologies, Inc. (15th
Judicial Circuit in and for Palm Beach County, Florida, Civil Case No. CA 02-005668-AF). This is an action filed on May 15, 2002, by a former employee of the Company seeking damages in excess of $15,000 for wrongful termination, retaliation, unpaid wages, and breach of contract. The Company filed a motion to dismiss certain claims, which alleged retaliatory discharge. The Court granted that motion by Order dated June 28, 2002, dismissing those claims without prejudice. The Company answered the remaining counts of the Company on July 24, 2002, denying liability and asserting affirmative defenses. Discovery is in the preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Gina Nicoleau v. Eagle Building Technologies, Inc. (15th Judicial
Circuit in and for Palm Beach County, Florida, Civil Case No. CA- 02-05675-AH). This complaint was filed on June 14, 2002, by a former employee of the Company seeking damages in excess of $15,000 for wrongful termination, retaliation, unpaid wages, and breach of contract. Plaintiff filed an amended complaint on or about July 10, 2002, dropping the retaliation claims. The Company answered the amended complaint on July 24, 2002, denying liability and asserting affirmative defenses. Discovery is in the preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this
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litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Mark Neuman v. Anthony D'Amato, Wilfred G. Mango, Jr., Donald
Pollack, Ralph Thomson, Robert Kornahahrens, Charles A. Gargano,
Samuel Gejedenson, Meyer Berman, Richard W. Lahey, and Eagle
Building Technologies, Inc. (Case No. 02-05560 AG in the 15th
Circuit Court for Palm Beach County, Florida
This is a shareholder derivative suit seeking damages in excess of $15,000 brought by a shareholder of the Company purportedly on behalf of the Company itself. The Company and all of the individual defendants except D'Amato filed a motion to dismiss the complaint on July 3, 2002. The Court did not rule on that motion because the plaintiff agreed to file an amended complaint. The plaintiff has not yet filed its amended complaint, so no response by the Company is due yet. No discovery has occurred and no trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
Actionable Intelligence Technologies, Inc. v. Eagle Building
Technologies, Inc. (Case No. 02-3197 AB in the 15th Circuit Court
for Palm Beach County, Florida
This is a suit filed on March 12, 2002, by a company based in San Diego, California, arising out of the Company's alleged breach of a contract between the parties and seeking damages in excess of $15,000. On April 30, 2002, the Company filed an answer to the complaint denying liability and asserting affirmative defenses. Discovery is in its preliminary stages. No trial date has been set. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Company in the event that either a favorable or unfavorable outcome results.
New Litigation:
A.R.H. Family, LTD., Corey L. Hart and Ray L. Hart Living Trust,
JDCAN Holdings, LP, John R. McLaughlin, Terry E. McLaughlin, Jun
Ming Trading, Ltd., Ken Taylor, Last Time Around, LP., Michael
Kenoyer and Pomposh Zutshi v. Eagle Building Technologies, Inc.,
Eagle Capital International Ltd., n/k/a Eagle Building
Technologies, Inc., Eagle Fuller International, Ltd., and Fuller
International Development, Ltd., (Case No. GN203813 in the 345
Judicial District for Travis County, Texas)
This is a petition for interpleader and a declaratory judgment, filed on October 21,2002, in the District Court in and for Travis
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County, Texas, by a group purporting to have made loans to, and investments in, Eagle and related companies. The suit asks the court to value the plaintiffs' holdings in Eagle and determine corrective action to comply with the Florida usury statute. Eagle was not served at it's principal office. Plaintiffs allege that service was properly effected on Eagle's agent in Texas. The parties have agreed to extend the deadline for Eagle's response to the complaint with Eagle fully preserving all of its defenses, including improper service of process. We are unable to express an opinion regarding the outcome of this litigation or as to any potential loss or range of loss to the Eagle in the event that either a favorable or an unfavorable outcome results. |
