Replies to post #305984 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[overachiever]

Why would he bother to fight something like that and spend a lot of money in legal fees?

SPNG simply asked him to deny he said SPNG could not sell that much. Since all he said was that it was impossible to sell 50 million dollars worth of soap filled sponges and he was speaking from his own experience, why bother to fight it? He never spoke specifically with respect to Spongetech and the newspaper article didn't claim he did.

It was an easy way to end unnecessary legal expenses.

Did SPNG actually sell 50 million in sponges by Sept of last year? I highly doubt it. The SEC stepped in and basically told the world that SPNG had been lying in their PRs and financial statements among other serious violations of securities laws

Why did that guy who owned Spongeables cave in so fast after he stated that SPNG's claim of $50M revenues selling sponges was impossible? He seemed pretty sure of it back then. They filed suit, he backed down then he said he never made that statement. All he had to do was wait until they got to court so SPNG could open their books. Bingo, he was right! Or was he?

[1jk1]

I was contacted by the New York Post reporter for an interview and spoke to her in my capacity as CEO of Spongeables LLC. As I recall our conversation, I was asked a general background question about sales by a company, like Spongeables, that had been in business for about two years selling infused body wash sponges (e.g., infused with shower gel) in the United States. My comments were that such a company could have sales from $5 to $10 million dollars a year.

The statements attributed to me were not about SpongeTech Delivery Systems Inc. The manner in which the statements were printed in the Post article may have created the incorrect impression that I was speaking about SpongeTech Delivery Systems Inc. and its sales, which I was not. I regret that the statements may have been misconstrued or that unfavorable inferences or conclusions about SpongeTech Delivery Systems Inc. may have been made. I have no personal knowledge regarding sales by SpongeTech Delivery Systems Inc. or its finances.

Very truly yours,

Michael Popovsky glta
Chief Executive Officer
Spongeables, LLC

Settlement AgreementExecution Copy(December 14, 2009)

[Christy from Google]

Because he was wrong. Before he can get to the SPNG books and records, the judge would want his numbers and the the related logic behind his statement. It's not an easy task to convince a Judge that "If you let me look at the other guys records, I'll prove myself 100% correct". Never gonna happen. He was dead in the water. Why fight it.

But Rosen is another matter. Rumor has it, the CPA he retained is a real bitch. She's (or he) gonna want the numbers and logic backing up Management's PRs, 8ks and whatever.

Rosen can't wait for the "games to begin". He's hoping the SEC has already done all the work. I have no doubt they have.

In both cases, someone has to provide proof of why they issued a statement.

Until Management releases information regarding the current status of the Wells/SEC investigation, one has to assume there are major problems. Still looking for $.06. I believe SPNG is a wonderful company, but I need something to read first. Not to much to ask, they do want my cold cash.