Cornell Yorkville Clients

[jonesieatl]

YORKVILLE ADVISORS SUED in 5 Count Complaint ...

... from article date November 2009: From April 2007 to July 2007, Cobalis Corp.’s share price went from approximately $1.20 per share to 10 cents per share, significantly impacting the ability of Cobalis to launch PreHistin to worldwide markets as a nutraceutical allergy relief alternative to antihistamines or to secure funding for another Phase III FDA clinical trial. The resulting drop in Cobalis share price amounted to a loss of approximately $60 million in shareholder equity.

On Aug. 1, 2007, less than seven months after execution of the PIPE transaction, YAGI involuntarily filed to convert Cobalis to Chapter 7 liquidation. It has been alleged that this was done ahead of the allowable cure periods for the alleged default to prevent Cobalis from honoring its obligations pursuant to the PIPE transaction.

In the lawsuit, Cobalis asserts claims for two counts of breach of contract and allegations of “equitable fraud,” breach of contract and accumulating greater than 4.99 percent of Cobalis shares at one time, securities fraud for violation of SEC Rule 10-b-5 relating to short selling without proper representation and equitable fraud and breach of fiduciary obligations by YAGI in collecting $415,000 in fees paid by Cobalis for execution of this PIPE transaction.

More at:

http://law.lexisnexis.com/practiceareas/New-Lawsuit-Filings/LitigationResourceCenter/Cobalis-Corp-Confirms-Filing-Of-5-Count-Lawsuit-Against-Yorkville-AdvisorsYA-Global-Investments