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PETER HALMOS STATEMENT

 MIAMI, Aug. 11 /PRNewswire/ -- In response to SafeCard Services, Inc.'s (NYSE: SSI) attempt to refile litigation in Wyoming State Court after similar litigation by SafeCard was just thrown out by the Federal Court in Wyoming, Peter Halmos, former SafeCard Chairman, said, "SafeCard's attempt to pervert and manipulate the legal system in and of itself is outrageous. Beyond that, and of serious concern to all SafeCard shareholders, is the issue of how SafeCard's board and management can willfully and intentionally waste corporate assets, potentially costing shareholders substantial monies, to pursue frivolous litigation. How many times does SafeCard need to be told that a court will not spend its time listening to SafeCard's attempts at legal maneuvering?
 "This latest try at a legal head feint by SafeCard is nothing more than a diversionary maneuver by a desperate board and management to divert attention from the serious problems they have caused for SafeCard. These problems are spelled out in litigation now under way in Illinois and Florida.
 "SafeCard's claims are not only frivolous procedurally, but SafeCard's claims already have been decided against them. More than three years ago, a Federal court disposed of SafeCard's very insider trading claims against Peter Halmos. Halmos prevailed and SafeCard sided with him. At that time, SafeCard's Miami lawyer Hugo L. Black, Jr. said in a signed motion brought by SafeCard to the Federal court that the insider trading claims were a "vicious and deadly untruth," "totally unfounded in fact," "reckless, malicious, reputation-shattering lie(s) made up out of whole cloth by desperate people." The court ultimately agreed with SafeCard and Mr. Black and ruled accordingly. Now, SafeCard is arguing the direct opposite of what it argued and prevailed upon in another court and is wasting the shareholders' money to boot.
 "SafeCard's management and directors should be ashamed of themselves for the tremendous waste of SafeCard's assets spent pursuing this frivolous litigation. As a SafeCard shareholder, I noted with particular alarm that SafeCard's second quarter earnings were, in SafeCard's words, 'adversely affected by an increase in legal fees...in the second quarter of 1993 (of) $1.3 million compared to $400,000 in the same quarter last year.' SafeCard's shareholders have every right to ask whose interests the Board and SafeCard's management are serving by these costly and fruitless pursuits that materially increase SafeCard's exposure," he said.
 -0- 8/11/93
 /CONTACT: Robert Siegfried, Roy Winnick of Kekst and Company, 212-593-2655/
 (SSI)


CO: SafeCard Services, Inc. ST: Florida, Wyoming IN: SU:

LG -- NY076 -- 1752 08/11/93 14:25 EDT
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Publication:PR Newswire
Date:Aug 11, 1993
Words:423
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