6D Global Technologies: Federal Court Denies Attachment of Assets
NEW YORK, Nov. 19, 2015 (GLOBE NEWSWIRE) -- 6D Global Technologies, Inc. (NASDAQ:SIXD), a premier digital business solutions company listed on NASDAQ under stock symbol "SIXD," today announced that a federal judge in Manhattan has made an initial ruling in its favor by denying Discover Growth Fund's (Discover) motion for attachment of assets and vacating a related restraining order. The ruling was made in a pending lawsuit that Discover brought against 6D Global Technologies over the conditions of its $10 million stock purchase agreement.
"We're very pleased with this initial ruling," said Tejune Kang, Chairman and CEO for 6D Global Technologies. "From the start, we have maintained that Discover's claims are without merit. I am glad we can put this attachment issue behind us and focus on what we do best – providing cutting-edge digital solutions for our clients."
U.S. District Judge P. Kevin Castel, in a ruling on Oct. 30, wrote that, based on the limited record before him, "Discover has failed to show a probability of success on the merits of any of the eleven claims it alleges against 6D Global Technologies, it thus has not satisfied the statutory requirements for an attachment in aid of arbitration" under New York law. Most notably, Judge Castel found that Discover had not substantiated its contention that 6D Global Technologies knew about grand jury and Securities and Exchange Commission investigations into Benjamin Wei, a New York businessman.
"Wei was neither an officer, director, nor employee of 6D," Judge Castel wrote. Based on the record before him, Judge Castel held that "Discover has not established a likelihood of success in proving that Wei was in fact dominating, controlling, and siphoning funds from 6D Global Technologies, nor that 6D Global Technologies' public reports and filings were materially false and misleading."
In its 28-page ruling, the Court concluded: "In sum, Discover has failed to establish the likelihood that 6D breached any of the clauses of the SPA [Stock Purchase Agreement]."
The case, which remains pending, is Discover Growth Fund v. 6D Global Technologies, Inc., No. 1:15-cv-07618-PKC in U.S. District Court for the Southern District of New York. 6D is represented by David S. Versfelt and Brian D. Koosed, of K&L Gates LLP, and Jacques Catafago and Tom M. Fini, of Catafago Fini LLP. The case is in its preliminary stages, and, as with any litigation, the outcome of the case is uncertain.
"6D Global Technologies will continue to vigorously defend itself against this lawsuit, as well as pending shareholder class-action cases, which we firmly believe are similarly without merit," Mr. Kang said.
About 6D Global Technologies, Inc.
6D Global Technologies, Inc. is a NASDAQ listed (stock symbol: SIXD) premier digital business solutions company serving the digital marketing and technology needs of enterprise-class organizations worldwide. 6D Global's common stock is included in four Russell Indexes including the Russell 2000®, Russell 3000®, Russell Global and Russell Microcap® Index. 6D Global Technologies' companies offer a full suite of services and solutions to help large organizations optimize digital business channels and create better experiences for their customers, resulting in increased revenue growth and market share. Services include web content management, web and marketing analytics, digital creative, marketing automation, mobile applications, digital publishing, and marketing management solutions. For more information, visit www.6DGlobal.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements with respect to the Company's future growth opportunities and strategic plan. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those items listed under the "Risk Factors" caption in the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended December 31, 2014. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
CONTACT: Media Contact: Randall Samborn (312) 214-2300 ir@6DGlobal.com
Released November 19, 2015