ZiaSun, Former President Anthony Tobin, and Promoter Bryant Cragun Drop Lawsuit and Agree to Pay Opposition Thousands
WEDNESDAY, OCTOBER 25, 2000 2:52 AM
- BusinessWire
SAN DIEGO, Oct 25, 2000 (BUSINESS WIRE) -- Plaintiffs in two closely watched
"cyberexpose" lawsuits have agreed to drop all of their charges against a
group of online message board posters and have also agreed to pay one of the
defendants $60,000.
ZiaSun Technologies Inc. (OTCBB:ZSUN), a San Diego-based company, sued
unrelated Internet posters George Joakimidis, Michael Morelock, Floyd
Schneider and Stephen N. Worthington in mid-1999 for allegedly waging a
cyberexpose campaign against them in Internet chatrooms.
ZiaSun, its former president Anthony Tobin and a ZiaSun promoter and
fundraiser, Bryant Cragun, alleged that the defendants disseminated false
information linking them to criminal behavior, pornography, improper
financial interests, false corporate disclosures and illegal business
practices.
Plaintiffs sought court injunctions against further posting by defendants.
They also demanded $500,000 in lost earnings and earning capacity,
reimbursement of their costs and attorneys' fees, a public apology and that
defendants retract all of their postings.
Defendants contended that everything they posted about plaintiffs was
absolutely true and therefore, as a matter of law, they could not be held
liable. One of the defendants, George Joakimidis, cross-sued ZiaSun, Tobin
and Cragun for fraud.
In a settlement agreement reached by the parties, plaintiffs dismissed all of
their charges against defendants, dropped all of their demands for monetary
compensation, dropped their demands that defendants apologize and retract
their postings and agreed to pay George Joakimidis $60,000. Except for one
news release per side, the parties agreed to make no future publications
about one another.
George Joakimidis stated: "I am relieved that it is all over. It is perhaps
unfortunate that the cases did not go to trial, where I would have been given
the opportunity to prove that everything I posted on the various message
boards was true.
"Cragun and ZiaSun, on the other hand, would have been compelled to
substantiate their allegations against me. So why did I agree to an
out-of-court settlement? To save time, effort and money and to put this
lawsuit behind me."
Michael Morelock stated: "I was looking forward to my day in court, but this
settlement was too good to pass up. I view this lawsuit as an attempt to
stifle free speech that backfired."
Floyd Schneider stated: "I feel vindicated. For the same reasons that
companies use the Internet as a promotional vehicle, it has also provided the
individual investor with the tools to seek out the facts and to be heard."
Stephen N. Worthington stated: "This is, in no uncertain terms, a victory for
free speech. If you know your facts, you should not be afraid to stand up and
fight for the truth. The suit appeared to be an attempt by ZSUN to silence
those who have raised questions concerning the operational and valuation
issues associated with the company.
"The securities markets require full and open discussion of information,
including all viewpoints. A public company should not be using its power to
sue those with opinions different from the company's, since that would chill
the exercise of free speech protected by the First Amendment and thwart the
goals of the securities laws."
James A. Shalvoy, the defendants' lawyer, noted: "We are seeing more of these
cases as the Internet's role in securities transactions increases. Honest
posters have nothing to fear. The Internet may be the New Frontier, but the
rule of law still applies."
For additional information, contact: James A. Shalvoy, attorney for George
Joakimidis, Michael Morelock, Floyd Schneider, and Stephen N. Worthington, at
310/796-0447 or jshalvoy@earthlink.net.
CONTACT: Law Offices of James A. Shalvoy
James A. Shalvoy, 310/796-0447
jshalvoy@earthlink.net
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