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Quality Carriers Inc. - Quality Distribution Inc. - Sued by Quality Food Grade Carriers Inc. in Hillsborough County, Fla.

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WINTER HAVEN, Fla.--(BUSINESS WIRE)--May 24, 2004

Suit Alleges Fraud and Conversion, and Demands 30 Million in Damages

The Law Firm of N. Burton Williams, P.A. with offices in Tampa Florida has filed suit in the Circuit Court, Thirteenth Judicial Circuit of Hillsborough County Florida on behalf of Quality Food Grade Carriers Inc. (hereafter Plaintiff). Quality Food Grade Carriers Inc. is one of more than 50 independent companies that are contracted to do business with Quality Carriers Inc. & Quality Distribution Inc. (Nasdaq:QLTY) of 3802 Corporex Park Drive, Tampa, Fla. (hereafter Defendant). The suit alleges, among other things, that the Defendant and its CEO Thomas Finkbiner (who is named personally in the suit) fraudulently converted or sold the exclusive rights to the food grade business operations of the Plaintiff to another company for $1.5 million four days after selling the exclusive rights to the food grade business operation to the Plaintiff. The suit further alleges that the Defendant has fraudulently opened charge accounts as well as fraudulently charged large sums of money to accounts that do not belong to the Defendant. The Plaintiff alleges that a large number of creditors are not being paid by the Defendant and that the Defendant is not paying its bill as they come due.

The Plaintiff alleges that the Fraud and Conversion described in the suit was part of a scheme to defraud Stockholders by misrepresenting the assets and liabilities of the Defendant. The scheme was carried out on the last day of the first quarter of this year and gave the Defendant the opportunity to misrepresent over $3 million on their quarterly report.

In addition to the Stockholder Fraud, alleged by the Plaintiff, relating to this suit the Plaintiff alleges that Thomas Finkbiner, CEO and Keith Margelowsky, Senior Vice President of Quality Distribution disclosed the Fraud that existed at the subsidiary, Power Purchasing Inc. This discloser occurred in October of 2003 approximately one month before the company's IPO. The Fraud at Power Purchasing Inc. resulted in several Federal suits being filed against Quality Distribution Inc. and its CEO, Thomas Finkbiner.
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Publication:Business Wire
Geographic Code:1USA
Date:May 24, 2004
Words:352
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