O'Quinn, Laminack & Pirtle Announces Update Regarding JAG Media Lawsuit and Other Related Matters
HOUSTON, Feb 20, 2004 (BUSINESS WIRE) -- O'Quinn Laminack & Pirtle announced
today an update regarding the status of the lawsuit involving its client, JAG
Media Holdings, Inc. (OTCBB: JGMHA), which is pending in the Federal District
Court for the Southern District of Texas against various brokerage firms, market
makers and others in connection with the "naked short selling" of JAG Media's
stock. On September 30, 2003 Judge Vanessa D. Gilmore issued an order denying
the defendants' motion to dismiss plaintiffs' second amended complaint and also
granted the plaintiffs leave to amend their complaint to address various
pleading issues addressed in Judge Gilmore's order. In January, the plaintiffs
filed their third amended complaint and subsequent to that filing the defendants
filed a motion to dismiss the third amended complaint. That motion to dismiss is
currently pending before Judge Gilmore and we expect a ruling on that motion
shortly. While that motion is pending, discovery is stayed by court rule. In the
interim, we are preparing for discovery and intend to commence discovery
immediately after we are permitted to do so. The firm, however, is currently
proceeding with discovery in a number of other similar cases involving clients
that have been victimized by naked short selling and we believe the information
we are compiling in those proceedings should expedite and have a positive effect
on discovery in the JAG Media suit.
In addition, our firm continues to work closely with JAG Media in connection
with remaining problems regarding it's recently declared stock dividend, where
many stockholders have been unable to obtain delivery of their Series 2 Class B
dividend certificates. We will also be monitoring closely the upcoming exchange
of JAG Media's Class A and Series 1 Class B shares for the new "certificate
only" common stock to insure that all participants comply with the terms of the
exchange.
In a related matter, we were very disappointed to see that NASD has extended
until April 1, 2004 implementation of its approved amendment to Rule 3370, which
expands the scope of the rule's affirmative determination requirements to
include orders received from broker/dealers that are not NASD members. There is
clearly a settlement problem in the OTC markets (and perhaps other markets)
which NASD has been aware of for quite some time and any further delays in
closing the loopholes which created this problem only serve to unnecessarily
cause further injury to OTC issuers and their investors. It was also disturbing
to find out that, according to NASD's rule filing with the SEC, the proposed
amendment to Rule 3370 was first approved by NASD's Board of Directors on
October 24, 2001 and NASD is only now attempting to implement that rule change,
nearly 2 ½ years after it was approved by NASD's Board of Directors. In
this context, it is unconscionable that NASD would further delay implementation
of this important rule change and allow unscrupulous parties operating behind
the veil of accounts in Canada and other off-shore locations to continue to harm
U.S. issuers and investors.
About O'Quinn, Laminack & Pirtle
O'Quinn, Laminack & Pirtle is one the nation's premier civil trial firms.
O'Quinn, Laminack & Pirtle are currently in the forefront of litigation
involving naked short selling, representing numerous issuers that have been
injured by this predatory practice. |
