James M. LaGanke Attorney At Law 13236 North 7th Street, Suite 4-257 Phoenix, Arizona 85022
July 31, 2009
VIA FACSIMILE (602) 586-5240 email: jtorre@stinson.com
James Torre, Esq. Stinson, Morrison, Hecker, LLP 1850 North Central Avenue Suite 2100 Phoenix, AZ 85004-4584
Re: MedCom USA Incorporated and Card Activation Technologies, Inc.
Dear Jim:
As you are aware, a few weeks ago I received Judge Murguia’s Order setting a Rule 16 Conference for August 26, 2009 at 4:00 p.m. At that time, I called Mike Manning and suggested that your firm substitute in as counsel for the Plaintiffs in the above-referenced action, and Mike agreed. Last week you sent me an E-mail and called several times. When we spoke, you directed me to dismiss the action. As I told you, I am not comfortable doing that without a Resolution by the Board of Directors signed and notarized authorizing me to dismiss the action. It is my understanding the board today consists of Mr. Kite and Mr. Williams and Mr. Williams is the target defendant in the litigation. It is also my understanding that the primary asset of MedCom and Card Activation is the litigation against Mr. Williams which means more than seven (700) hundred shareholders could be impacted by the dismissal of the case.
Because of what appears to be a pending SEC investigation, I am not comfortable dismissing the case without the Board Resolution. I am also not comfortable with the recent threats you have made against the former Chief Financial Officer that if she did not agree to delete and destroy what could be material evidence from her computer she would be sued.
Please be advised that if I do not receive a Board Resolution by next Monday, I will file a Motion to Withdraw.
Sincerely JAMES M. LaGANKE P.L.L.C. /s/ James LaGanke
JAMES M. LAGANKE, ESQ. (SB # 006913) JAMES M. LaGANKE, P.L.L.C. 13236 North 7th Street, Suite 4-257 Phoenix, Arizona 85022 Telephone: (602) 279-6399 Facsimile: (602) 993-5323 Email: jameslaganke@aol.com
ATTORNEY FOR PLAINTIFFS UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA Case No. 2:09-cv-00298 MOTION TO WITHDRAW Plaintiffs’ counsel hereby files his Motion to Withdraw.
DISCUSSION Since this case was filed in February of this year, the management structure of MedCom USA, Incorporated (“MedCom”) and Card Activation Technologies, Inc. (“Card Activation”) has changed. Plaintiff’s counsel believes that the current Chief Executive Officer is Robert Kite as to both companies and the current Board of Directors consists of Mr. Kite and William P. Williams. As the Court is aware, Mr. Williams is the target Defendant in this case and was sued for securities fraud and racketeering. Both MedCom and Card Activation are public companies with well over seven hundred (700) shareholders.
Several weeks ago, James Torre with Stinson, Morrison, and Hecker, who now represents MedCom and Card Activation, instructed Plaintiffs’ counsel to dismiss this action. Plaintiffs’ counsel responded in writing and a copy of that letter dated July 31, 2009 is attached hereto as Exhibit “A”. Plaintiffs’ counsel requested a Board Resolution authorizing him to dismiss this action which may represent the most significant asset of MedCom and Card Activation. Although a Board Resolution was promised, it has not yet been delivered.
Plaintiffs’ counsel does not believe he can comply with this Court’s Order setting a Rule 16 Case Management Conference because the clients are now represented by Stinson, Morrison, and Hecker. As a result, Plaintiffs’ counsel requests that this Court grant the Motion to Withdraw.
DATED THIS 17th day of August, 2009 JAMES M. LaGANKE, P.L.L.C. /s/ James LaGanke James Torre, Esq. Stinson, Morrison, Hecker, LLP 1850 North Central Avenue Suite 2100 Phoenix, AZ 85004-4584 email: jtorre@stinson.com Greg Davis Davis Limited 11111 North Scottsdale Rd. Suite 225 Scottsdale, AZ 85254 gdavis@davislimited.com /s/ James M. LaGanke
JAMES M. LAGANKE, ESQ. (SB # 006913) JAMES M. LaGANKE, P.L.L.C. 13236 North 7th Street, Suite 4-257 Phoenix, Arizona 85022 Telephone: (602) 279-6399 Facsimile: (602) 993-5323 Email: jameslaganke@aol.com
ATTORNEY FOR PLAINTIFFS UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA Case No. 2:09-cv-00298 ORDER GRANTING MOTION TO WITHDRAW
Upon the Motion to Withdraw filed by Plaintiffs’ counsel, and no objections being filed, and good cause appearing therefore, IT IS HEREBY ORDERED granting the Motion to Withdraw.
DATED THIS ____ day of August, 2009 By: _______________________________ The Honorable Mary H. Murguia Judge of the United States District Court for The District of Arizona
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