Anyone know what this is about. No doubt causing the low stock price for such a good growth company. from EDGAR filing
"On April 28, 1996, Star Holdings, Inc. d/b/a The Sloane Organization filed
a complaint against the Company in the United States District Court for the
Southern District of New York, captioned Star Holdings, Inc. d/b/a The
Sloane Organization vs. Aegis Consumer Funding Group Inc., alleging that it
was entitled to certain fees under a finder's agreement entered into with
the Company on January 2, 1996. The amounts alleged to be due were in
connection with the Company's private placement of $92 million of
asset-backed securities through Greenwich Capital Markets, Inc. ("Greenwich
Capital") in March 1996. On July 3, 1996, Star amended its complaint (as
so amended, the "Amended Complaint") to claim fees under the finder's
agreement and under the same common law principles cited in the original
complaint, as well as additional theories asserted in the Amended Complaint
in connection with the series of financing arrangements entered into by the
Company and Greenwich Capital and in connection with a potential sale of
common stock of the Company beneficially owned by Patrick Bennett to a
purchaser allegedly introduced to Mr. Bennett by Star. The Amended
Complaint seeks damages of at least $15.8 million, punitive damages of at
least $525,000, reimbursement of expenses for $20,000, declaratory relief,
costs, administrative fees and such other relief as the court deems
appropriate. On July 15, 1996 the Plaintiff filed a motion (the "Attachment
Motion") to attach the Company's assets based on allegations that the
Company is dissipating its assets. The Company has filed responsive papers
to the Attachment Motion. Additionally, the Company has filed a Motion to
Dismiss most of the counts in the Amended Complaint. Star has filed a
response to the Company's Motion seeking summary judgment on the Amended
Complaint. The Company believes it has meritorious defenses to the
allegations in the Complaint, the Amended Complaint, the Attachment Motion
and the Motion for Summary Judgment and intends to defend the matter
vigorously.
On May 2, 1996, a purported class action lawsuit on behalf of Josephine
Thornton and other individuals, captioned Josephine C. Thornton, et al., on
behalf of themselves and all others similarly situated vs. Bennett Finance
Inc. et al., was filed in the New York Supreme Court for New York County
against Bennett Finance Inc. and various other persons and entities alleged
to have been affiliated with or employed by The Bennett Funding Group, Inc.
("Bennett Funding") and Bennett Management and Development Corp. ("Bennett
Management"). Other entities, including the Company, were named as
defendants because they were allegedly alter egos and agents for Patrick
Bennett, Michael Bennett, their parents and certain other named individual
defendants. It is further alleged that, as such alter egos and agents,
the corporate defendants, including the Company, engaged in common law fraud,
negligent misrepresentations, deceptive acts or practices, sale of
unregistered securities and breaches of fiduciary duty in connection with
the financing
activities of Bennett Funding and Bennett Management. Plaintiffs in this
action seek an accounting, unspecified compensatory and punitive damages,
injunctive relief, costs, attorneys' fees and such other relief as the court
deems appropriate. The Company believes that the allegations as set forth
in the complaint are without merit and intends to defend the matter
vigorously." |
