Peter Strojnik, P.C. Files First Amended Complaint Alleging Signalife, Inc. Engaged in Mass Broadcasting of Junk Faxes to Promote Its Stock; Signalife Loses Strojnik Lawsuit
Wednesday, November 05, 2008 12:30ET
PHOENIX, Nov 05, 2008 (BUSINESS WIRE) -- On October 7, 2008, Peter Strojnik, P.C. filed a first amended complaint in its proposed class action lawsuit against Signalife, Inc. in the United States District Court for the District of Arizona, case number 2:08-cv-1116, alleging the medical supply company engaged in a mass-broadcast of junk faxes to promote its stock.
President and CEO of Peter Strojnik, P.C., Peter Strojnik, opined that Signalife certainly has a motive to pump up the price of their stock. The Complaint alleges "Signalife had a net loss for the six months ending June 20, 2008 in the amount of $8,826,795.00." Mr. Strojnik added, "Signalife admitted in a recent Form 10Q that they had no revenues from product sales during the first half of 2008." Indeed, the Complaint alleges "Signalife has no sales revenues and admits ... that its inability to generate revenues could cause it to go out of business."
Signalife has not gone out of business, but they have been delisted from the American Stock Exchange. In fact, Signalife recently affected a 4500 for 1 reverse stock split and started trading on the OTCBB and Pink Sheets.
Mr. Strojnik explained that the Telephone Consumer Protection Act awards damages at a minimum of $500 for each unsolicited fax. The proposed class action lawsuit against Signalife and others alleges Defendants broadcasted between approximately 12 million to 16 million unsolicited faxes.
In what Mr. Strojnik opined was a defense tactic, Signalife, Inc. filed a Complaint for Declaratory Relief against Peter Strojnik, P.C. in Los Angeles. Signalife sought a decree that it did not violate the TCPA. After several months of argument and deliberations, Orange County Superior Court dismissed the case.
Peter Strojnik, P.C.'s proposed class action lawsuit alleges that "The purpose of the Unsolicited Fax was to manipulate SGN stock or any publicly traded Signalife stock in the securities market." Mr. Strojnik opined, "Signalife cannot be allowed to violate federal law without redress for the regular people who receive these annoying faxes." Paraphrasing the allegations of the Complaint, Mr. Strojnik stated, "In my opinion, Signalife or its insiders hired a third party fax blaster to broadcast millions of faxes promoting its stock." Indeed, Signalife admits in its most recent Form 10Q that they are "in discussions with a number of large third party marketing and distribution partners with the manpower and financial resources to more quickly and aggressively promote [its] products."
Other defendants in the class action lawsuit include Digitalspeed Communications, Inc. and Adam Harris Pasternack.
For more information, please contact Peter Strojnik at ps@strojnik.com or at (602) 524-6602.
SOURCE: Peter Strojnik, P.C.
Peter Strojnik, P.C.
Peter Strojnik, 602-524-6602
ps@strojnik.com
Copyright Business Wire 2008
TechKim
