CMG Holdings Group Inc (CMGO)

[LouisDesyjr]

Is the lawsuit the only asset left?

Document #58, transcript, for CMG Holdings Group, as successor to XA The Experimental Agency, Inc. v. Wagner (1:15-cv-05814)

Scott Mathews for the defendants, starting at page 4, line 18

The plaintiff has alleged numerous wrongdoings by my client that range from unauthorized requests for payment and reimbursement of expenses that we submit are business expenses and not personal expenses to outright staff, equipment, furniture, services, etc. We deny each and every one of these claims. Each and every one of them will be shown to be without
merit, but in prosecuting this action, the plaintiff has also published a solicitation for financing via this investor hub website and via a press release wherein the plaintiff stated that it was offering a new classic Series A preferred share so it will have a first priority payout, from any litigation settlement.

and page 5, starting at line 18

Well, what it is is that it shows that this lawsuit, we submit, is, in essence, a sham, designed solely to prop up the stock amount of CMG. XA is no longer an operating entity, as far as we can tell, and it has no revenues. The only thing that it has is this lawsuit, and CMG
continually posts information on investor websites about how it is likely to recover monies in this website, claiming that in this lawsuit, claiming that it's going to somehow achieve a $20 million recovery. As part of that, we've alleged that Mr. Laken has made unauthorized trades and has traded in somebody else's name under this very stock, as well as other
companies. It fits a pattern of unlawful conduct now directed at my clients and directed specifically to this litigation, and that's why we believe that we're entitled to say that Mr. Laken, who's the controlling owner and director, chairman, CEO of CMG, is not entitled to come to this court and ask for equitable relief when he has these bad acts himself ongoing.
We believe that the cases that they cited in their letter are inapplicable.

The contention that the only thing left is the lawsuit would see to fit with the fact that the company is months behind on its filings and does not even seem to have a CPA firm retained since June 2017 to bring them up to date.

While there may be some recovery in the lawsuit, I would not expect it to be anywhere near $20 million.

Document 19-2 listed about $233K in equipment and expenses the company alleges was stolen, but that is a long way from $20 million. It also leads me to wonder what were the officers of CMGO doing while all this alleged stealing by employees was going on. Didn't anyone notice all of the equipment and furnishing disappearing from the offices over a period of months?

Louis J. Desy Jr.