Zalemark Holding Co Inc (ZMRK)

[I-Glow]

The lawsuit against Zalemart et el is very illuminating - I suggest everyone read the complaint filed by Jewelry television. It was very unusual that ZMRK didn't mention the settlement in the financial statement or in a press release. The settlement could be very damaging to shareholders.

From the complaint filed by Jewelry TV:

In a press release issued by Zalemark contemporaneous with Posh TV’s launch (the “Launch Press Release”), Posh TV described itself as a “national 24-hour luxury shopping network showcasing designer jewelry, gemstones [and] accessories.”

In a letter to Zalemark shareholders dated January 31, 2011 (the
“January Shareholder Letter”), Zalemark President, Steven Zale, stated that Posh TV “launched nationwide on Direct TV via channel 314 to over 50 million viewers.”

On August 1, 2011, Posh TV ceased its television broadcasts, but it has stated on its website that it will resume broadcasting after it upgrades its systems.

Posh TV was a absolute disaster - and it seems that Steve Zale was behind the fraudulent use of GemTV's trademarks.

3. An order requiring Defendants to account for and pay over to the Plaintiffs all profits wrongfully and unjustly derived by Defendants as a result of their actions
discussed herein, which sum the Plaintiffs request that this Court treble in order to (i) properly address the willfulness of Defendants’ conduct, (ii) prevent unjust enrichment, and (iii) deter similar conduct; and

5. At the election of Plaintiffs at any time prior to final judgment, an award of statutory damages of up to $4 million for the willful use of the GemsTV and JEWELRY TELEVISION counterfeit marks as described herein; and

6. An order requiring Defendants to pay over to JTV and MCGI reasonable
attorney's fees and costs incurred in the prosecution of this action

IG