CoolBrands International Inc. announces preliminary decision in Capricorn litigation
Tuesday June 17, 5:01 pm ET
TORONTO, June 17 /CNW/ - CoolBrands International Inc. (TSX: COB - News; "CoolBrands" or the "Company") announces that Judge Fried of the Supreme Court of the State of New York - New York County has issued his decision on CoolBrands' June 8, 2007 motion concerning certain litigation brought against the Company and its affiliates by Capricorn Investors III in connection with the Americana Limited Partnership. Judge Fried granted CoolBrands' motion to dismiss as to seven of the ten claims made by Capricorn in its complaint.
Judge Fried provisionally dismissed all of Capricorn's claims against CoolBrands and its subsidiary company Integrated Brands, Inc. but permitted the plaintiff an opportunity to re-plead its case to include these parties in the complaint within the next 30 days.
All claims that Capricorn brought against individual officers and directors of CoolBrands were dismissed.
Judge Fried dismissed Capricorn's claims alleging civil conspiracy, breaches of fiduciary duty, fraud, negligent misrepresentation and promissory estoppel.
He also dismissed the breach of contract action related to CB Americana's filing of an involuntary petition in bankruptcy against the Americana Partnership.
Judge Fried converted to a breach of contract claim Capricorn's declaratory judgment claim involving the Change of Control provision in the Partnership Agreement and also sustained its breach of contract claim for alleged failure to submit operational and financial information pursuant to that Agreement. Litigation continues on these points.
Commenting on the court's decision, Mr. Michael Serruya, President and Chief Executive Officer of CoolBrands, stated "While we are still evaluating the significance of this decision, we are extremely pleased by the ruling of Judge Fried, particularly by his provisional decision to dismiss all of Capricorn's claims against CoolBrands and Integrated Brands. However, we are mindful that he did leave the door open for the plaintiff to re-plead its case. In any event, we are ready to continue to vigorously defend against the allegations made by the plaintiff."
Lead Counsel for Defendants in connection with this litigation is Michael Campion Miller, Esq., of Steptoe & Johnson, LLP. |
