TK has a battle on his hands. The CEO of LONE didn't roll over and play dead. LONE released this news story today:
>LifeOne Responds to Another Misleading Thomson Kernaghan Press Release
> Business Wire - April 16, 1999 09:19
> NORTH BETHESDA, Md.--(BUSINESS WIRE)--April 16, 1999--LifeOne, Inc.
> (OTCBB:LONE) (the "Company"), today described a recent press release
> issued by Thomson Kernaghan & Co., Ltd. ("Thomson") as misleading and,
> the Company contends, issued with an expectation that the press release
> would further depress the price of the Company's common stock.
>
> LifeOne described the current Thomson press release as misleading in a
> number of ways, including that it creates the misimpression that
> Thomson's arbitration against LifeOne has resulted in some award against
> LifeOne, which is not the case. That arbitration remains pending.
>
> LifeOne further described the Thomson press release as misleading in
> its description of certain court proceedings between Thomson and LifeOne.
> LifeOne's position is that it has complied with court orders issued in
> these proceedings except to the extent it cannot do so because doing so
> would require it to violate one or more of the United States securities
> laws, United States bankruptcy laws or applicable state insurance laws.
> In this context, LifeOne has escrowed 4 million shares of LifeOne
> restricted common stock, but Thomson seeks to have the restrictions
> removed or to have LifeOne escrow unrestricted stock, which LifeOne
> maintains it cannot do, as described above.
>
> LifeOne also stated that its Vice Chairman and CFO, T. Brent Chapel is
> not a party to the proceedings in New York and he will continue,
> uninterrupted, to carry out his duties from the executive offices in Maryland.
>
> LifeOne also described Thomson's press release as misleading in that it
> suggests that the escrow account is maintained at Thomson. Such is not
> the case and the New York State Supreme Court has not ordered that any
> shares be deposited into any escrow account maintained at Thomson.
>
> Thomson is a defendant in a market manipulation case brought under the
> anti-fraud provisions of the federal securities laws by LifeOne and
> certain LifeOne shareholders. The complaint includes the violation of
> certain provisions of the Racketeer Influenced And Corrupt Organizations
> Act (RICO). That case, in which Thomson is accused of manipulating the
> market in and for LifeOne common stock by way of manipulative short
> sales, is pending in federal district court in Los Angeles, California.
> In that case, Thomson has failed or refused to produce documents,
> including in particular documents reflecting trading (including short
> sales) by it or its nominees of LifeOne common stock, even though Thomson
> is obligated to produce such documents.
>
> CONTACT: LifeOne, Inc., North Bethesda
> Brent Chapel, 301/984-0800 |
