Stonepath Announces Derivative Class Action Lawsuit Dismissed
September 28 2005 - 8:48AM
Business Wire
Stonepath Group (AMEX: STG), a global logistics services
organization, today announced the dismissal of Ronald Jeffrey Neer
v. Dennis L. Pelino, et al., a derivative lawsuit filed on October
12, 2004 in the United States District Court in Philadelphia
against certain of the Company's present and former directors and
officers. The lawsuit was one of several filed after Stonepath
announced last fall that it would restate its financial statements
for prior periods. It alleged various breaches of state corporate
law and a violation of Section 304 of the Sarbanes-Oxley Act of
2002. In dismissing the complaint in the derivative action, the
Court determined that the plaintiff did not have the right to bring
a private cause of action under Section 304 of the Sarbanes-Oxley
Act of 2002 and declined to exercise jurisdiction over the other
claims. If the plaintiff chooses to proceed, he could either appeal
the district court's ruling to the United States Court of Appeal
for the Third Circuit or re-file a derivative lawsuit in state
court. The dismissal of this action does not affect the other
actions which are consolidated in In re Stonepath Group, Inc.
Securities Litigation, pending in the United States Court for the
Eastern District of Pennsylvania. Stonepath has also filed a motion
to dismiss that consolidated action. "We believed from the
beginning that this case had no foundation and we are extremely
pleased to have won our motion to dismiss," stated Dennis L.
Pelino, Chairman of Stonepath. About Stonepath Group (AMEX:STG)
Stonepath (www.stonepath.com) is a global, third-party logistics
organization providing a full range of transportation and
distribution solutions to multinational and local businesses.
Through a strategic acquisition strategy and strong organic growth,
the Company has expanded rapidly, establishing a network of owned
operations throughout the U.S., the Asia-Pacific region and Latin
America. Stonepath provides a full-range of time-definite
transportation and distribution solutions to a diverse client mix
of retail leaders, automotive and technology concerns, government
agencies, and defense contractors. For more information about the
Company, please contact John Brine at (212) 254-8280.
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