SHOWBIZ PIZZA NAMED IN SUIT
SHOWBIZ PIZZA NAMED IN SUIT IRVING, Texas, Jan. 6 /PRNewswire/ -- ShowBiz Pizza Time, Inc.
(NASDAQ: SHBZ) today announced that it had been named a defendant in litigation commenced by certain holders of warrants, options and preferred stock of Integra-A Hotel & Restaurant Company in District Court in Dallas County, Texas on Dec. 31, 1991. The company was served with notice of the action on Friday, Jan. 3, 1992.
The suit alleges that the company, Integra, The Hallwood Group Incorporated and certain directors of such companies violated state securities laws and breached fiduciary duties to the Plaintiffs in connection with the Integra securities acquired by the Plaintiffs from 1986 through 1988. The suit also alleges that the 1988 "spin-off" of ShowBiz to holders of Integra common stock constituted a fraudulent transfer under Texas law. The Plaintiffs have sought actual damages equal to the alleged loss of value of their Integra securities as well as rescission of the company's 1988 spin-off and punitive damages. "We have disclosed the commencement of this suit not because we think it is credible or material but rather as a result of the malicious nature of the allegations made and the remedies sought," said Richard M. Frank, chairman and chief executive officer of the company. "This suit is entirely lacking in credibility and has no basis whatsoever," Frank added. The company, based on the advice of counsel, has determined the allegations to be totally without merit and unsupported by the actual facts and applicable law. The company intends to vigorously defend itself and its board of directors and will pursue any counterclaims available against the Plaintiffs in this litigation. -0- 1/6/92 /CONTACT: Michael H. Maguslak, chief financial officer of ShowBiz Pizza Time, 214-258-8507/ (SHBZ) CO: ShowBiz Pizza Time, Inc. ST: Texas IN: LEI SU:
TS-OS -- NY013 -- 6776 01/06/92 09:22 EST
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|Date:||Jan 6, 1992|
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