SOURCE: CMG Holdings, Inc

January 11, 2016 11:36 ET

HDS International Retains Counsel to Seek Recovery for Shareholders

ST. LOUIS, MO--(Marketwired - Jan 11, 2016) - HDS International Corp. and CMG Holdings Group, Inc. (OTC PINK: HDSI) and (OTCQB: CMGO): CMG Holdings Group, Inc.'s majority-owned subsidiary, HDS International Corp., and SirenGPS, Inc. ("HDSI", "SirenGPS" and together the "Companies") have retained the services of the law firm Elias, Gutzler and Spicer, LLC ("EGS") to investigate potential deceptive and manipulative practices of various third parties whose primary business is to provide financing to micro-cap public companies. The Companies plan to work with EGS to seek recovery for misrepresentation related to promises and signed agreements made in early 2015 to provide millions of dollars of funding to HDSI, which at the time had a license to the SirenGPS platform and later acquired the assets and operations of SirenGPS outright. 

Paul Rauner, current SirenGPS Chief Executive Officer and former HDSI Chief Executive Officer explained: "While we were working to develop our business, we believe certain individuals and investment groups were making false promises and using our good name and business developments to profit at the expense of shareholders and the Company. The attorneys at Elias, Gutzler and Spicer have great experience prosecuting complicated financial fraud cases, having won billion dollar plus judgments from corporate conglomerates such as JP Morgan Chase and DuPont. I have no doubt that they will get the best result possible for HDSI, SirenGPS and their shareholders." 

The retention of EGS is an important milestone for HDSI, to the extent it could potentially allow for recovery of damages for past shareholders of SirenGPS and for current and future shareholders of HDSI, whose plan of merger and financing with Good Gaming is on track to close within the next few weeks. The owners of Good Gaming, now the control shareholders of HDSI, believe it is critical to reset the bar for investors so that they can fully understand the adverse impact past failed financing measures had on the former business. EGS intends to spend the next month reviewing all communications, term sheets, trading volumes, notices of conversion made by the investor groups, and other data in order to determine a fair and appropriate amount of damages to include in any potential complaints to be filed in state and/or federal court and potentially with regulators. Shareholders of HDSI and other parties that believe they have a similar set of claims against these and other investor groups interested in further information should contact HDSI investor relations and/or EGS immediately.

About Elias Gutzler Spicer LLC

The Elias, Gutzler and Spicer law firm represents plaintiffs in litigation matters. Partners at the firm have been responsible for significant recoveries including a $13B recovery against J.P. Morgan and a jury verdict for $1B against DuPont.

About HDS International Corp.

HDS International Corp. (OTC PINK: HDSI), a technology development company, is in a definitive agreement to combine with CMG Holdings Group's (OTCQB: CMGO) majority-owned subsidiary Good Gaming, Inc. ("Good Gaming" - www.good-gaming.com). Good Gaming is the world's leading cash tournament gaming platform targeting the over 205 million eSports players and participants globally that want to compete at the high school or college level. Good Gaming recently confirmed its alliance with one of the world's leading games publishers and intends to launch a series of eSports cash tournaments in 2016.

Forward-Looking Statements

Statements not historical in nature, are intended, and are hereby identified as, "forward-looking statements". Forward-looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect," and similar expressions. The Company cautions readers that forward-looking statements including, without limitation, those relating to future business prospects are subject to risks and uncertainties that could cause actual results to differ materially from projections, estimates or aspirations, due to factors such as those relating to economic, governmental, technological, and any risks and factors identified from time to time in the Company's reports filed with the SEC.

Contact Information

  • Elias Gutzler Spicer LLC
    Richard Elias
    1924 Chouteau Avenue, Suite W
    St. Louis, Missouri 63103-3004
    (314) 833-6645

    HDSI CONTACT INFORMATION

    HDS International Corp.
    Investor Relations
    (708) 400-9050
    corporate@good-gaming.com