CMG Holdings Group Inc (CMGO)

[trader53]

CMGO - Litigation Settlement of $2.75 million




______________________________________________________


CMG HOLDINGS GROUP, INC.

ANNOUNCES IT HAS SETTLED ITS LITAGATION
AGAINST JOSEPH WAGNER AND HUDSON GRAY.

CHICAGO, IL April 9, 2019 –
CMG Holdings Group Inc. (OTC: CMGO)

announced today that its Civil Rico complaint
against Joseph Wagner, Hudson Gray
and the Hudson defendants
was settled on January 7th, 2019.

The settlement -
$2.75 million dollars -
is scheduled to be paid out over 30 months.

The initial payment
was made shortly after
the settlement agreement was consummated.

Payment is personally guaranteed
by the main defendants.

It should be noted
that CMG’s legal team,
along with CMG’s provider
of e-discovery services,
agreed to significant fee concessions
in order to secure this settlement.

Because of these substantial provider discounts,
CMG will net slightly less than
2 million dollars
in total
from the Hudson Gray settlement monies.


In the end,
CMG’s decision to settle the case
against the Hudson defendants
pivoted on a number of important considerations.

These include,
but were not limited to,
the following;

Litigation up to,
and including trial,
would have required borrowing
an additional million dollars
(or more)
from litigation funders
at exorbitant rates.

It was also not lost on us
that legal and e-discovery teams
would become less likely
to negotiate away monies owed for services
as the cost of those services
exponentially increased.

Simply put,
we were faced with the very likely prospect
that winning twice as much at trial
would net the same result
as the settlement offer we ultimately accepted,
after expenses were paid.

CMG’s victory –
four and a half years in the making -
is owed in large part to
my wife, Barbara.

Her dedication
and intrepid pursuit of the truth –
even when finding that truth
required thousands of hours of research
and reading tens of thousands
of stolen documents –

helped CMG create
a compelling case
against the defendants
that passed the significant legal hurdles
required to survive
the motion to dismiss.

My own contribution
included management
of the three separate legal teams
that helped adjudicate this matter.

Of these,
Kevin O'Connor from Pecker & Abramson
deserves special commendation.

He was the legal tour de force
that ultimately brought this case
to its final conclusion.

During the four and a half years of litigation
I took no salary as CMG’s CEO,
in order to preserve as much capital as possible
for the company’s legal expenses
and operating costs.

As a result,
I am owed approximately 750k in back salary,
which I will take as it becomes available,
to make sure CMG has enough operating capital
to be able to grow, expand and prosper.

Shareholders should know
I have not sold a share of CMG stock
since May 2018.

Neither has my wife
nor anyone in my family.

CMG
will soon be clear of debt
and in a position to grow XA,
the Experiential Agency,
its most valuable asset.

XA,
under the direction of my daughter Alexis,
will be producing this year’s
Coachella after-party
for Moschino this weekend,
with an estimated gross
in excess of 1.1 million dollars.

We expect this event
to kick off a banner year for XA.

I appreciate the support of all CMG shareholders.

I hope you find the information
in this announcement
cause for staying on board
for anticipated future company growth.

I don’t think you’ll be sorry.

About CMG Holdings Group, Inc.

CMG Holdings Group, Inc.

is a sports, entertainment,
marketing and management company
providing event management implementation,
sponsorships, licensing and broadcast,
production and syndication.

Contact Info:

Glenn Laken, CEO

Phone: [phone]

------------------------------


https://www.otcmarkets.com/stock/CMGO/news/CMG-HOLDINGS-GROUP-INC-ANNOUNCES-IT-HAS-SETTLED-ITS-LITAGATION-AGAINST-JOSEPH-WAGNER-AND-HUDSON-GRAY?id=224175

https://backend.otcmarkets.com/otcapi/company/dns/news/document/35739/content

______________________________________________________________



Live! Charts