CMG Holdings Group Inc (CMGO)

[PlayMoneyBS]

These facts are incorrect? Feel free to explain why financing was needed for litigation costs. As stated below, the financing was outside the "out of pocket expenses."

ITEM 8.01 OTHER EVENTS.

Glenn Laken, Chairman and CEO of CMG Holdings announced today that Company management has arranged financing for all litigation costs related to CMG’s civil RICO lawsuit against Hudson Gray, Studio AG, Mixed Company and the Hudson Defendants. Under the terms of this arrangement, CMG’s only financial responsibilities will be out of pocket expenses, such as experts and deposition costs. In return for said funding, CMG has agreed to share any recovery costs on a 67 - 33 split basis. Mr. Laken noted, “This financing arrangement is a critical component for the Company, to assure that shareholder’s claims against Hudson Gray are vigorously litigated and collected without any danger of coming up short monetarily.”

Feel free to review the above 8-K and correct it.