US Stem Cell Inc (USRM)

[Dragon Lady]

MAJOR NEW LAWSUIT against U.S. Stem

Well, I guess we know now why TWO key, long, long standing BOD members left , aka ONE BEING FIRED apparently.

https://www.browardclerk.org/Web2

Type in "U.S. Stem Cell" on the Broward County 17th circuit "case search" and you'll find the lawsuit.

Case: CACE16016085
Filed 8/30/2016
Plaintiff: Northstar Biotech Group, LLC
Judge ID / Name: 18 Garcia-Wood, Marina

Plaintiff's attorney retained: Brent A Friedman

WOW, look at this attorney profile- this dude's no "yellow pages" attorney either. Some serious credentials looks like to me.

http://brentafriedman.com/index.php/attorney-profile/

This lawsuit, it's a freaking DOOZY !! I mean a stunner to me. I just gave it a once glance so far- it's like 100 pages or more in the formal complaint, and sure as sh@t involves the firing of the key BOD and Northstar LLC and it makes some STUNNING revelations/allegations against CEO Migual Tomas, and I mean STUNNING.

I'll read it more and even try and capture some pages and post um, cause again, the allegations against CEO Miguel Tomas IMO, are just mind bending. The lawsuit is even asking the court to step in as a "receivership" (which is similar to what happens in a BK proceeding) and have the court oversee the running of the company until the suit is settled, as the plaintiff, Northstar LLC, alleges that Tomas can not be trusted to run the company and has been essentially spending all incoming cash to pay himself (paraphrasing a first glance read of the suit) and has created "HIS board of directors", meaning they have no real BOD, but it's all his show, that he's tried to alter the preferred share vote, post the 1000 to 1 reverse split to take control of the voting power of the company away from Northstar who is guaranteeing the company's debt and that he's kept them all "in the dark" as to the day to day operations, in the dark on where the cash and funds go, in the dark as to the actual accounting of the company, has continually diluted the shares w/o any accountability (NO DUH on that one from me, LOL !) and running of the company and where any money is going and on and on and on. ALLEGATIONS ONLY OF COURSE, but holy sh@t, they are some heavy duty accusations in that suit, serious ones if proven true, even if part of um are true, seems to me.


100 plus pages of allegations and again, CALLING FOR A JUDGE TO TAKE OVER CONTROL FROM THE CEO (appoint a RECEIVERSHIP), as the plaintiff, Northstar LLC alleges has has "no long term business plan" and isn't managing the company properly etc.

I was wondering how long it would take for this to occur- after Tomas cut/fired Charles (Chuck) Hart off the BOD. Hart always struck me as a decent guy, sorta a ordinary guy doing the best he can, just a guy that got caught up in this early on, probably due to ties to Howard Leonhardt, the founder, also who appears to me as a decent guy more than likely.

Then Tomas comes in and more or less takes over this entire thing it seems to me- and it's just been all down hill from there, which is what's essentially being stated in this lawsuit. WOWZA.

This seems like this might just be the end to this whole thing eventually- it's that heavy duty sounding a suit IMO. These are no small time allegations or some minor dispute stuff. This is alleging, the way I read it, that the CEO is, and has been for a long time, "rogue" and stiffing certain BOD members out of their right to know how the company's been being run, what the financial realities are, trying to change voting power of preferred shares to maintain his total self control over the company- I mean a sh@t load of real, real serious sounding stuff seems like to me.

Again, I'm gonna read this a LOT more tonight and try and get some page captures maybe of some of the real "juicy" pages- cause this stuff is amazing to me, BUT, in so many ways, for me personally, NOT SURPRISING IN THE LEAST. I guess I'm more like- WHAT TOOK SO LONG, LOL !! But hey, that's just ME, ONLY ME, and ONLY my freaking opinion, which is my right to have. Make up your own mind(s) about whatever you think about the lawsuit and all the allegations contained within it.

WHAT DOES U.S. STEM CELL spend on lawyers, LOL???? SEEMS that's their number one expense besides Tomas's salary and perks, LOL ! Gawd..a near cash broke company...and now ANOTHER freaking large suit for which they'll have to retain ANOTHER law firm or firms. Crimeny- they must spend out the butt on attorney's fees, then finish a qtr with $130K total cash left to their name.

But..DILUTION..DILUTION...DILUTION of them common shares via use of toxic convertible debt and now "factoring" borrowing against all in-coming receivables too.. I guess keeps them bucks a flowing in, at just enough of a trickle to "cover the tab".