All,
The meeting has been adjourned until Thursday 3pm (25th), same place, and we still await a response from the NY Court.
I will provide the previously promised update on the legal matters shortly. A press release will be issued soon describing some of the latest developments. I summarized some of them below.
We are working our hardest to defend the company while we wait for the court to provide clarity on the deals.
Best,
Shiv
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Falcon has taken additional action in Delaware to invalidate the elections of the boards. We believe their claims are without merit.
On December 27, 2023, GMFHC and GMFC (the "Companies") launched counterclaims in the New York State Supreme Court, responding to a lawsuit filed by Falcon. The counterclaims allege Falcon seriously damaged the Companies, including:
Usury Allegations: We argue that Falcon's financial practices, marked by exorbitant interest rates, are usurious and in violation of New York State law. The counterclaims provide specific examples, meticulously detailing how these excessive rates have resulted in substantial financial harm to GMFHC and its shareholders.
Breach of Contract: The counterclaims assert that Falcon has consistently breached the terms of various agreements, causing considerable harm to GMFHC and its shareholders. The counterclaim outlines specific instances of these alleged breaches, along with their consequences.
Breach of Good Faith and Fair Dealing: The Companies contend that Falcon's conduct has not only breached contractual obligations but has also violated the implied duty of good faith and fair dealing inherent in all contractual relationships. The counterclaims cite specific instances where Falcon's actions deviated from these norms.
Fraudulent Inducement: The Companies allege that Falcon engaged in fraudulent inducement to secure certain agreements. We seek legal remedies, including the declaration of these usurious loan agreements as null and void, as well as compensation for the damages incurred.
The counterclaims come on the heels of GMFHC’s complaint filed against Falcon and its GMFC director appointees, and a Falcon GMFHC appointee who also served as sole officer of GMFC, on November 22, 2023, in Delaware Chancery Court (Case Number: C.A. No. 2023-1169-LWW). It seeks redress for Falcon's actions on multiple fronts, including breach of contract, breach of fiduciary duties, breach of good faith and fair dealing, and fraudulent inducement. The complaint paints a picture of Falcon's alleged scheme to undermine GMFHC's operational autonomy and damage shareholder value, actions that have significantly harmed GMFHC and its shareholders.
Best,
Shiv
