6D Global Technologies: Federal Court Denies Attachment of Assets
November 19 2015 - 7:00AM
6D Global Technologies, Inc. (NASDAQ:SIXD), a premier digital
business solutions company listed on NASDAQ under stock symbol
"SIXD," today announced that a federal judge in Manhattan has made
an initial ruling in its favor by denying Discover Growth Fund's
(Discover) motion for attachment of assets and vacating a related
restraining order. The ruling was made in a pending lawsuit that
Discover brought against 6D Global Technologies over the conditions
of its $10 million stock purchase agreement.
"We're very pleased with this initial ruling," said Tejune Kang,
Chairman and CEO for 6D Global Technologies. "From the start, we
have maintained that Discover's claims are without merit. I am glad
we can put this attachment issue behind us and focus on what we do
best – providing cutting-edge digital solutions for our
clients."
U.S. District Judge P. Kevin Castel, in a ruling on Oct. 30,
wrote that, based on the limited record before him, "Discover has
failed to show a probability of success on the merits of any of the
eleven claims it alleges against 6D Global Technologies, it thus
has not satisfied the statutory requirements for an attachment in
aid of arbitration" under New York law. Most notably, Judge Castel
found that Discover had not substantiated its contention that 6D
Global Technologies knew about grand jury and Securities and
Exchange Commission investigations into Benjamin Wei, a New York
businessman.
"Wei was neither an officer, director, nor employee of 6D,"
Judge Castel wrote. Based on the record before him, Judge Castel
held that "Discover has not established a likelihood of success in
proving that Wei was in fact dominating, controlling, and siphoning
funds from 6D Global Technologies, nor that 6D Global Technologies'
public reports and filings were materially false and
misleading."
In its 28-page ruling, the Court concluded: "In sum, Discover
has failed to establish the likelihood that 6D breached any of the
clauses of the SPA [Stock Purchase Agreement]."
The case, which remains pending, is Discover Growth Fund v. 6D
Global Technologies, Inc., No. 1:15-cv-07618-PKC in U.S. District
Court for the Southern District of New York. 6D is represented by
David S. Versfelt and Brian D. Koosed, of K&L Gates LLP, and
Jacques Catafago and Tom M. Fini, of Catafago Fini LLP. The case is
in its preliminary stages, and, as with any litigation, the outcome
of the case is uncertain.
"6D Global Technologies will continue to vigorously defend
itself against this lawsuit, as well as pending shareholder
class-action cases, which we firmly believe are similarly without
merit," Mr. Kang said.
To learn more about 6D Global Technologies, visit
www.6DGlobal.com, or email info@6DGlobal.com.
About 6D Global Technologies, Inc. 6D Global
Technologies, Inc. is a NASDAQ listed (stock symbol: SIXD) premier
digital business solutions company serving the digital marketing
and technology needs of enterprise-class organizations worldwide.
6D Global's common stock is included in four Russell Indexes
including the Russell 2000®, Russell 3000®, Russell Global and
Russell Microcap® Index. 6D Global Technologies' companies offer a
full suite of services and solutions to help large organizations
optimize digital business channels and create better experiences
for their customers, resulting in increased revenue growth and
market share. Services include web content management, web and
marketing analytics, digital creative, marketing automation, mobile
applications, digital publishing, and marketing management
solutions. For more information, visit www.6DGlobal.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, including, but not
limited to, statements with respect to the Company's future growth
opportunities and strategic plan. Forward-looking statements are
neither historical facts nor assurances of future performance.
Instead, they are based only on our current beliefs, expectations
and assumptions regarding the future of our business, future plans
and strategies, projections, anticipated events and trends, the
economy, and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict and many of which are outside of our control.
Our actual results and financial condition may differ materially
from those indicated in the forward-looking statements. Therefore,
you should not rely on any of these forward-looking statements.
Important factors that could cause our actual results and financial
condition to differ materially from those indicated in the
forward-looking statements include, among others, those items
listed under the "Risk Factors" caption in the Company's public
reports filed with the SEC, including the Company's Form 10-K for
the fiscal year ended December 31, 2014. Any forward-looking
statement made by us in this press release is based only on
information currently available to us and speaks only as of the
date on which it is made. We undertake no obligation to publicly
update any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new
information, future developments or otherwise.
CONTACT: Media Contact:
Randall Samborn
(312) 214-2300
ir@6DGlobal.com
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