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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (53409)	3/19/2000 4:33:00 PM
From: StockDung	Respond to of 122087

Does this kind of promotion sound familiar to many on this board? It happens everyday on Wall Street IM2 sues Tirex, alleging stock "artificially inflated" WILMINGTON, Del,, March 19 (Reuters) - IM2 Merchandising and Manufacturing has sued Tirex Corp. <TXMC.OB> for allegedly obtaining a contract with IM2 through fraud and then promoting the IM2 contract to "drive up the market value of Tirex," court papers say. In a lawsuit filed Thursday in the U.S. District Court in Delaware, Canada-based IM2 and David Sinclair, a Tirex shareholder, charge Tirex and former president Terence Byrne with breach of contract and fiduciary duty, fraud, and misrepresentation. IM2 claims that Tirex' "vigorous promotion" of the contract with IM2 boosted the stock, which had traded as low as $0.03 a share in the past year, to "as high as $1.41 per share." Tirex closed Friday at $1.06, down from $1.07 the day before. IM2 said in court papers that an OTC Insider Trades list for March 13 says Byrne, four other officers, and a director, all of whom resigned last year, "sold large blocks of shares after the stock price had dramatically risen." According to court papers, Tirex agreed in December 1998, to use IM2's technology to manufacture and supply IM2 with 20,000 rubber floor mats a week by March 1, 1999, a deal expected to generate profits of up to $15 million. The month before, IM2 had itself signed an agreement to have Ohio-based Akro Corp. market and sell the mats to the automotive, commercial and retail markets. "From the outset of negotiations...Tirex and Tirex Canada were fully aware that the TCS-1 Plant was a total failure and (they) could not possibly meet their contractual obligations," IM2 said in alleging fraud. TCS-1 is Tirex' cryo-technology for separating steel from rubber in scrap tires. The mats were to be produced in a Tirex TCS-1 plant, but startup problems caused delays until March 2, when Tirex said the process was now ready for commercialization. IM2 has asked the court for unspecified compensatory and punitive damages and for an injunction that would bar Tirex from promoting its TCS-1 technology or its commercial relation with IM2. On Sunday, no one at Tirex' Montreal, Canada offices could be reached for comment. 15:33 03-19-00