US Court Rules in VisionChina DMG Lawsuits
VisionChina, 11/07/11
Chinese mass-transit digital advertising operator VisionChina Media (Nasdaq: VISN) today announced that the Supreme Court of the State of New York, New York County, has granted the motion to dismiss VisionChina Media and Vision Best's fraud, unjust enrichment and declaratory judgment claims, as well as one of VisionChina Media and Vision Best's claims for breach of contract alleging the destruction of certain data. The court denied the motion to dismiss another contract claim asserted by VisionChina Media and Vision Best for not less than USD 2,785,633. The court further granted the Former Digital Media Shareholders' (Shareholder Representative Services, LLC, Oak Investment Partners XII, Limited Partnership, Gobi Partners, Inc., Gobi Fund, Inc. and Gobi Fund II, L.P.) motion to attach USD 30 mln of VisionChina Media's and Vision Best's assets to be held as security in the event that the Former Digital Media Shareholders are successful in their claims against VisionChina Media and Vision Best for breach of contract. The ruling also requires the Former Digital Media Shareholders to file a USD 500,000 undertaking in the event that it is ultimately determined that they were not entitled to the attachment. Finally, the court denied the Former Digital Media Shareholders' request to compel VisionChina Media and Vision Best to release the restrictions on certain VisionChina Media stock that would facilitate the conversion of that stock to American depositary shares. The Court held that the Former Digital Media Shareholders were not entitled to such relief because they may have a claim for damages if they can establish that VisionChina Media and Vision Best wrongfully refused to release the restrictions.
VisionChina Media and Vision Best intend to appeal the Supreme Court's order that dismissed the fraud, unjust enrichment, declaratory judgment claims and breach of contract alleging the destruction of certain data and granted the motion for an order of attachment. VisionChina Media and Vision Best also intend to continue to vigorously pursue their remaining contract claim and defend against the claims asserted by the Former Digital Media Shareholders.
Editor's Note: For more information on this topic, please see "VisionChina Media Sues Former Shareholders of DMG," MD 12/28/10 issue, and "VisionChina Countersued by Former DMG Shareholders," MD 3/03/11 issue.
Keywords: VisionChina television Oak Investment Partners Gobi Partners VISN law litigation in-vehicle display out-of-home display digital media advertising
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