It’s now public with details verified so I feel comfortable posting the facts. The FINAL MINUTE ORDER has been posted on the San Diego Country Court website. The words FINAL JUDGMENT AND PERMANENT INJUNCTION are printed at both the top and bottom of the page. As sated earlier, even though the file was posted by the court late yesterday afternoon, I wanted to wait until this morning to post my thoughts so I could review the documents and have input from trusted sources. For the record, there was no filing listed for Halpern hiring an attorney or submitting a motion to reconsider. That means the order has been finalized by the judge and Greg Halpern is no longer a director of any sort at MAXD as relief was granted to the Vechery Family Trust. Details will follow throughout the day. One important fact is that this judgment is as of April 28, 2023. That means everything in the order was in effect as of that day in April three weeks ago today.
Here are a few key legal phrases that caught my attention right away while reading the order: “Halpern’s Misrepresentations Regarding the Business of Max Sound.” And this one: “Halpern Does Not Adhere to Corporate Formalities and Operates Max Sound in Order to Loot Max Sound and its Shareholders.” Followed by this one: “CONCLUSIONS OF LAW: Standard for Default Judgment.” Finally, there was this one: “Plaintiff Proffered Prima Facie Evidence of the Substantive Claims Set Forth in the Complaint to Satisfy the Standard for a Permanent Injunction.”
Here is the final crescendo of the order:
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED THAT:
Thus, based on the foregoing factual findings and for good cause, pursuant to Corporations Code § 304 and the equitable authority of this Court, defendant Halpern, and anyone acting in concert with him, are permanently enjoined and restrained from, directly or indirectly, by use of any means or instrumentalities:
A. Serving as a director of Max Sound for a period of five (5) years. Moreover, Halpern is hereby ordered removed as a director of Max Sound as of the issuance of this Judgment.
B. Seeking reelection as a director of Max Sound for a period of five (5) years.
C. Making false statements about his relationship with Max Sound, including by holding himself out a director, officer, or agent of Max Sound.
Additional facts from the FINAL JUDGMENT AND PERMANENT INJUCTION:
“PROPOSED” FINAL JUDGMENT AND PERMANENT INJUNCTION. The word “proposed” was crossed out by the judge. This indicates a final and permanent injunction.
“As pled in the complaint and support in its motion for default judgment, Plaintiff's claims merit entry of judgment and a permanent injunction. Based on the evidence presented by Plaintiff, defendant Halpern has engaged in conduct in his capacity as a director of defendant Max Sound constituting fraudulent or dishonest acts or gross abuse of authority or discretion with reference to the corporation.”
“The allegations in the complaint and supporting evidence submitted with the motion for default judgment establish that Plaintiff is entitled to an order removing Halpern as a director of Max Sound, as well as attendant permanent injunctive relief to stop Halpern from using his majority voting power to re-elect himself or a proxy into the directorship of Max Sound.”
AI
