This news , imo, is much larger than USXP's 389mil$ win. At least CGYC has a chance of collecting part of the $2.1 BILLION and hidden in this news is a deal with Qwest.
B: QWEST COMMUNICATIONS: CARNEGIE INTERNATIONAL CORPORATION - C
B: QWEST COMMUNICATIONS: CARNEGIE INTERNATIONAL CORPORATION - Carnegie
International Seeks Default Judgement in $2.1 Billion Suit - vs. Grant
Thornton; 'Willful and Intentional Destruction of - Evidence' by Accounting
Firm Alleged
New York, New York, Jul 31, 2001 (Market News Publishing via COMTEX) --
Paramount Subsidiary Signs Master Agency Agreement with Qwest Communications
Carnegie International Corporation, an Internet support and computer telephony
holding company, said it has filed a motion in Baltimore City Circuit Court
asking for a judgement in its favor in a $2.1 billion suit against Grant
Thornton LLP, its former accounting firm.
The motion, filed on Wednesday, July 25, alleges that J.W. Mike Starr, a senior
partner and former director of risk management at Grant Thornton, "willfully,
knowingly and intentionally destroyed Carnegie documents with the full
understanding that litigation was imminent." The motion says that Starr admitted
destroying the documents in a deposition given earlier in July in Chicago.
Carnegie's motion says that "Starr admitted that he deliberately destroyed the
entire Carnegie file, including, among other things, e-mails, communications
with Carnegie, and his contemporaneous notes of telephone calls, meetings with
Carnegie management and the members of its Audit Committee."
Carnegie originally filed suit against Grant Thornton in May 2000, claiming that
the accounting firm had "caused omissions and misstatements" in filing Form 10SB
and Form 10KSB for 1997 and 1998 made with the Security & Exchange Commission
That eight-count complaint accused Grant Thornton of fraudulent inducement,
negligence, malpractice, breach of contract, excessive fees, breach of trust,
intentional interference with business relations, and defamation, during the
period between December of 1997 and October of 1999.
Those filings, Carnegie's suit and motion allege, led to a "near catastrophic"
drop in the trading price of the company's shares, a suspension in trading
lasting more than a year, and, ultimately, delisting by the American Stock
Exchange.
Trading in Carnegie shares resumed in May of 2000 on the NASDAQ Over-the-Counter
Bulletin Board.
E. David Gable, chairman of Carnegie, said the company is represented in its
actions against Grant Thorton by William H. Murphy, Jr., of Baltimore, who filed
last week's motion, and Willie E. Gary of Stuart, Florida.
Paramount Signs Agreement with Quest
Carnegie also said that its Paramount International Telecommunications, Inc.,
subsidiary has signed a Master Agency Agreement with Qwest Communications Ltd.
(NYSE: Q). Paramount, based in Vista, California, serves hotels, hospitals,
institutions and other businesses, primarily in 0+/- call auditing and
international one-plus sectors, and has more than 250,000 registered phones.
Under the terms of the two-year agreement, Qwest will provide enhanced services
for Paramount, including live operator service in the U.S., Canada, and Mexico,
and the ability to use Qwest branding for all call records originating from
Paramount properties. Paramount also gains access to the Qwest platform for
calls placed from Western Europe to the U.S. with credit card, local exchange
carrier (LEC) or third-party/collect billing.
Michael Eberle, president and CEO, of Paramount, said the new business from
Europe should result in some 15,000 additional calls billed through Paramount
per month within a six-month period, and that the live operator services in the
U.S., Canada and Mexico could increase his company's profits by 15 to 30 per
cent annually.
About Carnegie International Corporation
Carnegie International Corporation is an Internet support and computer telephony
holding company with specialization in telecommunications products, services and
distribution, and in E-Commerce and EDI. Private Securities Litigation Reform
Act of 1995 provides a "safe harbor" for forward-looking statements. Certain
information included in this Press Release (as well as information in oral
statements or other written statements made or to be made by Carnegie
International Corporation) contain statements that are forward-looking, such as
statements relating to the future anticipated direction of the
telecommunications industry, plans for future expansion, various business
development activities, planned capital expenditures, future funding sources,
anticipated sales growth, and potential contracts. Such forward-looking
information involves important risks and uncertainties that could significantly
affect anticipated results in the future, and accordingly, such results may
differ from those expressed in any forward-looking statements made by or on
behalf of Carnegie International Corporation. These risks and uncertainties
included, but are not limited to, those relating to development and expansion
activities, dependence on existing management, financing activities, domestic
and global economic conditions, change in Federal or state laws, and market
competition factors.
CONTACT: TEL: 410/785-7400 Carnegie International Corporation, Lowel
Farkas
EMAIL: lfarkas@carnegieint.com |
