CHICAGO, March 21, 2012 /PRNewswire/ -- Veltex
Corporation-- OTC Markets symbol (VLXC)
A United States District Court in California has handed down one of the largest
awards ever in the Central District of California in favor of Veltex Corporation,
("Veltex") a Chicago-based holding
corporation.
On March 10, 2010, Veltex's
attorneys filed a 96 page federal complaint on behalf of Veltex
Corporation in the United States District Court, Central District
of California (Western Division -
Los Angeles) entitled, Veltex
Corporation vs. Javeed Azziz Matin
et al, case number 2:10-cv-01746-ABC-PJW. That case alleged damages
from 22 individual and corporate defendants. The litigation which
has been followed closely by legal scholars outlined a massive
fraudulent conveyance and transfer count wherein millions of
dollars of corporate assets were stolen by the defendants.
Chief US District Court Judge Audrey B.
Collins ruled in favor of Veltex and against certain
defendants directing the corporation to file a proposed final
Order, which has been done. The corporation expects the Court to
sign the final order on or before April 1,
2012.
The amount of the award exceeded $102
million dollars in which $100,078,621 in fraudulent conveyance and
transfer damages to the corporation was found. The Court further
ordered $793,442.86 in prejudgment
interest to be paid to Veltex. The Court also ordered $2,005,172.42 in attorney's fees along with cost
and expenses of $3,859.95 bringing
the total amount of the award to $102,881,096.23. The award will also carry
post judgment interest annually as calculated by Federal rules.
Certain other defendants have settled with Veltex under strict
confidential settlement agreements.
Veltex Chairman R. Preston
Roberts, who was present in the courtroom when the ruling
came down, stated: "The shareholders of Veltex can feel confident
that this board will be working diligently to retrieve from this
award every nickel, including interest, in any form available to
us. This is a major development for Veltex and it's shareholders.
The Board will be meeting post haste to develop a plan of action to
maximize this asset on our balance sheet. I could not be more
pleased with the efforts put forth by our consultants and attorneys
in this stage of our asset recovery plan."
Veltex had retained the prestigious law firm of Blecher &
Collins PC. Lead attorneys Maxwell M.
Blecher, Maryann R. Marzano
and Kristen M. Peters headed up the
legal team. Merle L. Royce of the
Law Firm of Merle L. Royce was
Chicago counsel in the matter.
Blecher & Collins PC is recognized as one of the premier
complex business litigation law firms in the country. Founded by
Maxwell M. Blecher in 1971 and based
in Los Angeles, California, the
firm excels in handling a full range of complex business and
commercial litigation. Blecher & Collins is uniquely positioned
to provide unparalleled legal representation to Veltex with its
team of highly experienced attorneys. Blecher & Collins has
successfully prosecuted business and securities fraud claims,
claims for embezzlement and banking fraud, and legal and accounting
malpractice claims. Blecher & Collins has successfully
challenged major corporations such as Eastman Kodak, Johnson &
Johnson and AT&T, among others. Blecher & Collins is
an AV peer-review rated firm is proud to count among its alumni two
California state court judges and
a federal court magistrate. Details of the firm can be found at
www.BlecherCollins.com.
Veltex will update shareholders with developments as progress
warrants. Copies of the litigation can be found on the
corporation's website at www.Veltex.com
Veltex Corporation maintains its' corporate headquarters in
Chicago, Illinois.
Investor and Company Contact:
Veltex Corporation
312.235.4014
Safe Harbor Statement
Certain of the above statements contained in this press release
are forward-looking statements that involve a number of risks and
uncertainties. Such forward-looking statements are within the
meaning of that term in Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those indicated in the forward-looking statements as a result of
various factors. This press release includes forward-looking
statements intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally can be identified
by phrases such as Veltex or its management "believes," "expects,"
"anticipates," "foresees," "forecasts," "estimates" or other words
or phrases of similar import. Similarly, statements herein that
describe Veltex's business strategy, outlook, objectives, plans,
intentions or goals also are forward-looking statements. All such
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those in forward-looking statements.
SOURCE Veltex Corporation