CoolBrands International Inc. announces further developments in Capricorn lawsuit
Friday August 1, 5:32 pm ET
TORONTO, Aug. 1 /CNW/ - CoolBrands International Inc. (TSX: COB - News; "CoolBrands" or the "Company") announces that, as anticipated, Capricorn Investors III L.P. ("Capricorn") has renewed its efforts to implicate the Company and its subsidiary, Integrated Brands Inc. ("Integrated"), in the ongoing Americana Limited Partnership (the "Partnership") lawsuit in the Supreme Court of the State of New York - New York County.
The Company previously announced on June 17, 2008, that Judge Fried had granted CoolBrands' motion to dismiss seven of the ten claims made by the plaintiff, Capricorn, in its complaint. Judge Fried had provisionally dismissed all of Capricorn's claims against CoolBrands and Integrated, but permitted the plaintiff an opportunity to re-plead its case to include these parties in the complaint.
Capricorn has now served its Third Amended Complaint, in which it alleges, inter alia, that CoolBrands and Integrated are de facto partners in the Partnership and are obligated to pay Capricorn US $65 million under the "Change of Control" provision in the Partnership Agreement. Capricorn also claims unspecified damages from CoolBrands and Integrated based on allegations that the defendants failed to provide Capricorn with certain information as required under the LP Agreement.
The Company continues to deny any liability to Capricorn in this lawsuit and is vigorously preparing a motion to dismiss all of the plaintiff's claims against it and Integrated. Judge Fried has set a timetable for this motion through October, 2008 and has stayed any further discovery steps in the lawsuit until after the motion is decided. |
