This 8k filing just popped up...
Item 8.01 Other Events.
On April 5, 2007, an order was entered by the Supreme Court, Seventh Judicial District, in connection with the company’s declaratory judgment action against CXO On The Go LLC and CXO On The Go of Delaware LLC (CXO) directing the Monroe County Clerk to release to the company 40,000 shares of the company’s common stock and 245,000 common stock purchase warrants which had previously been issued to the Clerk. The Court also ordered the Monroe County Treasurer to return to the company $250,000 previously deposited as an undertaking in connection with this litigation. This order effectuates the decision of the Appellate Division, Fourth Department rendered in favor of the company on March 16, 2007.
As a result of the Court’s order, the number of company’s outstanding common stock has been reduced by 40,000 shares and the aggregate number of outstanding common stock warrants has been reduced by 245,000 warrants. In addition, the company intends to repay its $250,000 indebtedness to a shareholder who had advanced such monies on behalf of the company.
The company has also filed a new lawsuit against CXO in the Supreme Court, Seventh Judicial District, alleging that it has been damaged in excess of $6 million by such management consulting firm. The company alleges that such harm was caused by the failure of CXO to fulfill its obligations to the company, breach of contract, breach of fiduciary duty, fraud, conversion, unjust enrichment and by fraudulently inducing the company enter into a series of purported agreements by which the management consulting firm was paid amounts far in excess of the benefits derived from its services.
The company is demanding that CXO pay at least $6 million in damages to the company for the harm it caused.
