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Technology Stocks : Fonix:Voice Recognition Product (FONX) -- Ignore unavailable to you. Want to Upgrade?

To: Randy McCubbin who wrote (3146)	1/3/2002 2:54:37 AM
From: Randall E Westberg	Read Replies (2) \| Respond to of 3347

Mac you see this before? A Salt Lake County District Court judge has dismissed charges of “tortious business interference”, defamation, and other claims brought by Salt Lake-based Fonix Corporation against a New Mexico man, on the grounds that Fonix failed to plead or prove to the court that Utah held jurisdiction over the New Mexico resident. The message board poster, a self-employed New Mexico man, had posted numerous messages on Raging Bull’s financial message boards criticizing Fonix for its ongoing history of misleading news releases, and other attempts by the company to snooker investors and the investing public. The same judge had earlier denied Fonix’ request for an “emergency temporary restraining order” which would have prevented the defendant from posting comments about the company online, or from communicating with Fonix’ vendors and customers. Instead, the judge modified the order to merely prohibit the man from “interfering with [Fonix] business relationships”. Both rulings by this Utah court conform in most respects with similar rulings in lower courts throughout America. Fonix can still bring claims against posters in other states, however most SLAPP litigants rarely file suit outside of their headquarters jurisidiction. The act of filing a SLAPP action in a state other than the defendant’s forum state is a pattern that we have seen repeated in many, if not most frivolous suits against anonymous internet posters. Because most, if not all, of these lawsuits are designed for the purpose of intimidating and harrassing citizens by burdening them with expensive litigation, the plaintiff will frequently choose a foreign (out of state) venue which is out of reach of the defendant, knowing that it is unlikely that a typical defendant will be able to raise the ten thousand plus dollars that many out of state attorneys will want as a retainer to take this type of case. The John Does Anonymous Foundation has learned from discovery taken in many of these cases that the plaintiff will often obtain a financial profile or credit report to determine if the potential defendant has financial resources with which to defend. If it can reasonably be determined that a defendant is not financially equipped to launch a sufficient defense, a SLAPP will be filed in the improper jurisdiction, anticipating that the defendant will not appear to defend. The technique described above is most frequently used for purposes of obtaining discovery on un-named defendants. Then, when the “bully corp” has obtained the information on the unnamed “John Does” through unbridled discovery with no defensive resistance from the subject persons, a company will frequently abandon the original lawsuit. However, in the Fonix case, the company evidently instructed its prestigious Salt Lake City law firm to serve the named defendant who resides in Albuquerque. It is no secret that financially troubled Fonix could soon be facing bankruptcy amidst hints of cash insolvency. It’s stock, which a year ago was trading in the $1.50 range, is now trading below ten cents. Fonix purports to sell speech recognition technology, but most of what investors have seen the past years are “roll-out” plans with few results. It is clear that Fonix and its wealthy management have been “grazing” off of investor funds, because the company has never turned a profit, relying instead on sales of stock to pay company management, including its CFO Roger Dudley, millions of dollars in cash, bonuses, and stock benefits the past several years out of Fonix Corporation’s treasury, which are immensely out of line for a typical small corporation the size of Fonix which has no established retail market or asset development. It has been reported that Dudley, a Latter Day Saint, is related by marriage to the president of the Mormon Church, also headquarted in Salt Lake City. To date, investors have lost millions of dollars in Fonix stock with no foreseeable hope of ever recovering their savings and retirement fund losses. Fonix was represented by the Salt Lake City law firm of Durham, Jones, & Pinegar. The defendant, Michael McDonald, who had never appeared in a court case before, represented himself pro se. Staff Report