MEI DIVERSIFIED REPORTS COLLECTION OF CASH ESCROW
MEI DIVERSIFIED REPORTS COLLECTION OF CASH ESCROW MINNEAPOLIS, Aug. 25, 1992 /PRNewswire/ -- MEI Diversified Inc.
reported recent collection of a $2,000,000 cash escrow, the last of three cash escrows that it has collected relating to the August, 1990 acquisition of The Glemby Company, one of the three professional beauty salon groups from which its subsidiary, MEI Salon Corporation, was created.
Donald E. Benson, MEI Diversified Inc. president, stated that, "The collected escrows, which aggregated $4,700,000 including accrued interest, represent only a part of the ultimate recovery we expect to eventually obtain from former Glemby shareholders." Further recovery is expected to result from litigation pending in U.S. District in Minnesota. Benson stated, "In our view, that concession of the escrows by the former Glemby shareholders in part validates similar litigation recently commenced against the former shareholders of the other two professional beauty salon groups, namely Essanelle Salon Company and Maxim's Beauty Salons, Incorporated, which had been acquired from Regis Corporation and its affiliates including several officers of Regis Corporation." The Regis lawsuit, which was filed in District Court for the State of Minnesota, alleges mismanagement, common law fraud, breach of contract, negligent misrepresentation and violations of securities and racketeering laws. Benson also stated, "That lawsuit, in which MEI seeks a substantial monetary recovery from Regis Corporation and its affiliates, together with other relief, is being aggressively pursued and MEI is prepared to make a substantial financial commitment to assure MEI shareholders that our claims are validated." -0- 8/25/92 /CONTACT: James A. Cesario of MEI Diversified, 612-339-8853/ CO: MEI Diversified, Inc. ST: Minnesota SU: IN:
KH -- MN005 -- 2920 08/25/92 09:31 EDT
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|Date:||Aug 25, 1992|
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