CINAR to Contest Legal Action by Silicon Isle, Lowell Holden, Globe-X Canadiana Limited and Globe-X Management Limited in the United States.Business Editors MONTREAL--(BUSINESS WIRE)--March 31, 2003 CINAR considers the legal action filed against it by Silicon Isle, Ltd., Lowell Holden, Globe-X Canadiana Limited and Globe-X Management Limited in the United States District Court for the Eastern District of Pennsylvania The United States District Court for the Eastern District of Pennsylvania is one of the original 13 federal judiciary districts created by the Judiciary Act of 1789. It originally sat in Independence Hall in Philadelphia as the United States District Court for the District of , to be without merit and that the allegations made therein are baseless. On July 12, 2002 CINAR Corporation ("CINAR") announced that it had petitioned the Supreme Court of Bahamas for permission to wind-up Globe-X Canadiana Limited and Globe-X Management Limited (collectively "Globe-X") and to appoint PricewaterhouseCoopers as liquidator. Such proceedings were granted on September 5, 2002 and PricewaterhouseCoopers was appointed as liquidator. While Globe-X subsequently appealed from such decision and such appeal is pending, an application filed by Globe-X for a stay of execution of the Liquidation Order was refused and the Order appointing the liquidator remains in effect. On January 8, 2003, CINAR announced that it had petitioned the High Court of Justice of Anguilla for enforcement of the Bahamas winding up order, or alternatively for a winding-up order in Anguilla, since Globe-X has continued its incorporation under the laws of Anguilla and that Globe-X had filed a Defense and Counterclaim A claim by a defendant opposing the claim of the plaintiff and seeking some relief from the plaintiff for the defendant. A counterclaim contains assertions that the defendant could have made by starting a lawsuit if the plaintiff had not already begun the action. in the High Court of Justice of Anguilla claiming damages from CINAR aggregating CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $66 million for alleged breach of contract, defamation and/or malicious falsehood A malicious falsehood is a lie that was uttered with malice, IE. the utterer knew it was false or would cause damage or harm. Malicious falsehood is a false statement made maliciously that causes damage to the claimant. . In its January 8, 2003 press release CINAR stated that it considers that this Defense and Counterclaim is without merit and that the allegations of Globe-X are baseless. An action was filed on Wednesday, March 26, 2003 in the United States District Court for the Eastern District of Pennsylvania against CINAR and certain of CINAR's former directors and officers by Silicon Isle, Ltd. and Lowell Holden (who purport to be the shareholder and one of the Managing Directors respectively of Globe-X) and purportedly on behalf of Globe-X. Such action has not yet been served on CINAR. In such action, the Plaintiffs claim damages for an indeterminate amount alleged to be in excess of US$ 55,000,000 for violations of the Securities Exchange Act of 1934, for slander, for libel, for breach of contract, for negligent interference with contractual relations and for intentional interference with contractual relations Intentional interference with contractual relations is a common law tort that applies to an activity or activities that causes a damage to contractual relations between parties. . Plaintiffs also allege "racketeering Traditionally, obtaining or extorting money illegally or carrying on illegal business activities, usually by Organized Crime . A pattern of illegal activity carried out as part of an enterprise that is owned or controlled by those who are engaged in the illegal activity. " involving unnamed defendants, and claim treble damages A recovery of three times the amount of actual financial losses suffered which is provided by statute for certain kinds of cases. The statute authorizing treble damages directs the judge to multiply by three the amount of monetary damages awarded by the jury in those cases . Such claims are, in large part, the same or similar to the claims made in the Defence and Counterclaim in Anguilla, as reported in CINAR's press release dated January 8, 2003. This action has purportedly been filed on behalf of Globe-X even though it was not authorized by PricewaterhouseCoopers, the liquidator of Globe-X in the Bahamas. CINAR Corporation is an integrated entertainment and education company involved in the development, production, post-production and educational products for children and families. CINAR's web site is www.cinar.com. This release may include information that could constitute forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (U.S.). Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. Forward-looking statements in this document include, but are not necessarily limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the results of the company's reviews. Actual results or conditions may differ from those anticipated by these and other forward-looking statements. Such forward-looking statements are subject to a number of known or unknown risks and uncertainties. |
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