Message #4 From:
Stock News Bot Date: January 23, 2007 05:00:00 AM
ISCR News instaCare Receives Favorable Resolutions in Lawsuits
NEW YORK--(BUSINESS WIRE)--instaCare Corp. (OTCBB:ISCR), a leading distributor of
life-saving prescription drugs and a developer of patent-pending
technologies for e-health and the EMR applications, announced today it
has achieved favorable resolutions in two lawsuits pending on behalf of
the Company.
In the first lawsuit, the Company sued Ronald Kelly and his Company,
Kelly Company World Group, Inc., together with Linda Kelly and Kimberly
Kelly, in the United States District Court, for the Central District of
California. The lawsuit dealt with the prior merger agreement between
instaCare and certain of the defendants, and was premised on allegations
of fraud, conversion and violations of the federal RICO statutes. This
case was settled before trial, for a stipulated judgment against Kelly
Company World Group in the amount of $200,000. In addition, the claims
against Ronald Kelly were settled for the return of the 31,958,000
shares of stock that he had received as part of the consideration for
the 2004 acquisition (the shares were subject to the reverse split
previously effected by the Company, and the rate of 80/1). In exchange
for the settlement, the complaint was dismissed by instaCare as against
Ronald Kelly, Linda Kelly and Kimberly Kelly. Ronald Kelly has also
agreed to provide additional information concerning the identities of
present and former shareholders of instaCare with whom he dealt during
and subsequent to the merger.
The amount of the stipulated judgment and the settlement for the return
of the stock was, from the Company’s
standpoint, determined in large part by what the Company believed to be
the defendants’ ability to pay. The Company’s
forensic research provided documents and statements to the effect that
Kelly Company World Group, Inc. and Ronald Kelly were subject to
substantial judgments in other states, and that the chances of any large
collection were unlikely.
In the second lawsuit, the Company brought suit against Investor
Relations Services, Inc. and Summit Trading, Ltd. for a declaration that
the alleged contracts between the Company and those entities were not
binding and were therefore unenforceable. Investor Relations Services
and Summit Trading cross-complained, alleging that (1) the contracts
were enforceable, (2) pursuant to those contracts, those entities were
entitled to 10% of the outstanding stock in the Company at such time as
they might choose to exercise their “option,”
and (3) they were entitled to damages against the Company’s
CFO, Keith Berman, for intentional interference with the alleged
business relationship between the Company and those entities.
The Superior Court for the State of California, in Los Angeles County,
has issued its decision, relieving instaCare of any obligations to
Investor Relations Services or Summit Trading, finding that the alleged
agreements were not properly authorized or executed, and that they never
became binding upon instaCare by reason of the lack of approval by the
Company’s Board of Directors. At the same
time, the court found against Investor Relations Services and Summit
Trading, in all respects, on their cross-complaint. The court has
further found that instaCare and Keith Berman are deemed the prevailing
parties in this litigation. The importance of that finding is that
instaCare, under California law, will most likely be entitled to recover
its reasonable attorney’s fees in this
litigation. Litigation counsel for the Company will be petitioning the
court for such fees shortly, and management has indicated that it
intends to pursue enforcement of the judgment.
“With these two challenges now behind us, we
are again focused squarely on the continued execution of our business
and acquisitions plans, which we believe will enable the Company to
achieve significant growth objectives and deliver shareholder value,”
stated Robert Jagunich, Chairman of the Board. “We
are pleased that we were able to achieve a positive resolution in the
Kelly Litigation, and that the court sided with instaCare in the
Investor Relations Services/Summit Trading Litigation, allowing us to
protect the company and its shareholders from what we considered to be
an outrageous and unconscionable contract, and recognizing the good
faith of the position adopted by the Company. We remain committed to the
highest ethical standards, and expect our employees, officers and
vendors to conduct their business both ethically and professionally.”
Forward-Looking Statements:
This release contains forward-looking statements about our business or
financial condition that reflect our assumptions and beliefs based on
information currently available. We can give no assurance that the
expectations indicated by such forward-looking statements will be
realized. There may be other risks and circumstances that we are unable
to predict. When used in this release, words such as "believes,"
"expects," "forecasts," "intends," "projects," "plans," "anticipates,"
"estimates" and similar expressions are intended to identify
forward-looking statements, although there may be certain statements not
accompanied by such expressions. Wasserman Morris & Company has been
compensated twenty-five thousand dollars by a third party for preparing
the report.
