LOS ANGELES, July 7, 2014 (GLOBE NEWSWIRE) -- Shareholders of 10.8 million shares of common stock of Halberd Corporation (HALB), today announced that on May 30th, 2014, the District Court for the Central District of California found Halberd liable for securities fraud in violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5 in Case No. CV 13-01412 BRO, according to plaintiff SMSW Enterprises. A trial to determine damages for the fraud has been set for October 14, 2014 in federal court.
The same shareholders have petitioned a Clark County Nevada Court in Case No. A-14-697936-P to appoint their Managing Member the Custodian of Halberd Corporation pursuant to NRS 78.347 on the grounds of abandonment of its business and that the corporation is threatened with irreparable injury because it cannot obtain the required vote of its board to directors to continue its business, or, alternatively, as receiver under 78.320(2) and NRS 78.630 or NRS 78.650, based on irreparable harm to the business, abandonment and/or insolvency of the corporation. The petition, set for hearing on August 18, alleges that the duly elected board of directors abandoned the corporation and the current acting management is acting without approval of the shareholders.
"We announced the proceedings today because we feel shareholders are again being misled by the current acting management, who has failed to disclose this litigation. Not once have we been consulted as shareholders for any corporate action that has been taken this year," said Martin Katz, Manager of SMSW Enterprises, 23710 Enterprises, 5086 Enterprises, and 996 Third Avenue Enterprises.
CONTACT: Martin Katz firstname.lastname@example.orgSource:SMSW Enterprises, LLC