Depends on what you deem a "deal"???
Yes, Megas won a judgment against certain individuals. Yes, Megas did not cut a deal with certain people.
However, Megas ended up cutting a deal with Capital Growth Financial and JH Darby. Winning a judgment does not include having to cover their sales with new shares at prices far below the last known trade before the halt.
Capital Growth Financial, L.L.C. and JH Darbie & Co.intervened in the Civil Litigation (the "Intervenors") and alleged that the Company negligently hired the Defendants and negligently supervised their actions and activities, and asserted Oklahoma and federal securities fraud and failure-to-register claims
against the Defendants and the Company.
In conjunction with the Civil Litigation, the Registrant reached an agreement with JH Darbie & Co., whereby the Company delivered 25,075,000 common stock shares to JH Darbie & Co. to be held pending settlement or conclusion of the Civil Litigation. These shares were delivered to JH Darbie & Co. to satisfy the requirements of Depository Trust Company ("DTC") until common stock shares eligible to be resold without restriction could be delivered by JH Darbie & Co. to cover its short position in the Company's common stock. Furthermore, JH Darbie & Co. placed in trust $72,500 to be used to pay the costs of registering the 25,075,000 common stock shares under the Securities Act of 1933, as amended (the "Securities Act"), and the applicable state securities laws in the event that registration was required.
In accordance with the Settlement Agreement, the Company's claims against the Settling Defendants and the claims of the Settling Defendants against the Company were resolved by the exchange of release of claims, a release of the Wrongfully Issued Shares and payments to the Company
Furthermore, the claims of the Intervenors against the Company were exchanged for the issuance of 25,025,000 shares of the Company's common stock to JH Darbie & Co. and 219,723,000 shares of the Company's common stock to Capital Growth Financial,L.L.C. for an aggregate sum of 244,748,000 common stock shares.
