SOURCE: Max Sound Corporation

Max Sound Corporation

February 01, 2016 18:30 ET

Max Sound Accruing Damages as VSL's CEO Continues to Disobey Court's Order

SANTA MONICA, CA--(Marketwired - February 01, 2016) -  Max Sound Corporation (OTCQB: MAXD) provides a brief litigation update to its Shareholders.

On January 28, 2016, MAXD, by its counsel, appeared ex parte in San Diego Superior Court, requesting that the Court expedite the March 24, 2016 Order to Show Cause (OSC) hearing to determine whether VSL should be found to be in contempt of Court.

This latest Court appearance was due to VSL's continued violations of the Emergency Arbitration Award, and the Superior Court's Order confirming the Award. At the hearing, the Court asked MAXD to demonstrate what additional damages it has incurred by virtue of VSL's ongoing, allegedly violative, conduct. MAXD, through its counsel, and retained economic experts, are in the process of preparing that information for the Court.

"After last week's hearing, I believe that the Court once again witnessed VSL's chronic disrespect for the Arbitral and Judicial processes, particularly the Superior Court's Authority," says John Blaisure, MAXD's CEO. "We look forward to providing the requested evidence to the Court substantiating the additional damages VSL has caused to our Shareholders and stock as a result of its ongoing and chronic wrongful conduct." 

In the interest of providing greater clarity to our valued Shareholders about this litigation, the following is a roadmap and timeline documenting VSL's wrongful conduct since VSL's secret attempt to dissolve VSL Communications Ltd UK, and the AAA's August 25, 2015 entry of the Award against VSL.

April 13, 2015 - Robert Newell Artese (the current Director of VSL Communications Ltd.) secretly filed an application with the United Kingdom's (UK) Companies House to Strike Off (dissolve) VSL Communications Ltd. from the Registers.

August 9, 2015 - MAXD finds out that in 6 days, VSL Communications Ltd. will be dissolved.

August 13, 2015 - Companies House UK confirmed MAXD's objection to the dissolution (or Striking Off) of VSL Communications Ltd. As a result, the process to Strike Off was suspended until November 10, 2015.

August 25, 2015 - AAA issues Emergency Arbitration Award, which orders VSL to cease engaging in any of the following practices:

  1. Disavowing the validity of the Contract with MAXD.
  2. Altering any corporate or other entities formed, owned, or controlled by VSL that has any connection with the Contract.
  3. Licensing, selling, assigning, or transferring, any of the technology, patents, or intellectual property, connected to the Contract in any manner, and is required to cooperate with the pending ODT enforcement litigation and fulfill its contractual obligations.

August 27, 2015 - VSL violates the Award by making a series of telephone calls intending to interfere with pending litigations.

September 2, 2015 - VSL continues to violate the Award by contacting Google and offering to help them destroy MAXD's case by supplying Google with spurious "standing" arguments.

October 23, 2015 - Companies House UK confirmed MAXD's second objection to the dissolution of VSL Communications Ltd. As a result, the process to Strike Off was suspended until January 20, 2016.

November 24, 2015 - The Northern District of California dismisses MAXD's patent case against Google for a lack of standing.

December 4, 2015 - The San Diego Superior Court confirms the August 25, 2015 Emergency Arbitration Award.

December 7, 2015 - VSL's key executive files a letter brief with the German Court denouncing as invalid the Confirmatory Licenses signed in September of 2014 and denying that Vedanti had granted VSL any licenses of its intellectual property in direct contradiction of the written Licenses by Vedanti and VSL's two officers simultaneously granting Vedanti's rights to VSL and to MAXD.

December 8, 2015 - MAXD is forced to withdraw its claims against Google in Mannheim, Germany or likely face defeat as a result of VSL's actions.

December 10, 2015 - VSL's CEO disseminates false information about MAXD in an International Press Release.

December 10, 2015 - VSL files a Writ of Appeal on the December 4, 2015 Superior Court order in favor of MAXD.

December 11, 2015 - The California Court of Appeals, denies VSL's Writ of Appeal.

December 14, 2015 - MAXD sends VSL a demand letter, which VSL ignored.

December 15, 2015 - VSL files a peremptory challenge in an effort to replace the Superior Court Judge.

December 28, 2015 - The Superior Court denied the Peremptory Challenge.

January 19, 2016 - Companies House UK confirmed MAXD's third objection to the dissolution of VSL Communications Ltd. As a result, the process to Strike Off was suspended until April 13, 2016.

January 21, 2016 - The Superior Court determines that MAXD had presented evidence sufficient to warrant the issuance of an Order to Show Cause (OSC), and scheduled a contempt hearing to occur on March 24, 2016 at 9:00 a.m.

January 28, 2016 - As a result of VSL's ongoing wrongful conduct, MAXD's appears ex parte before the San Diego Superior Court to request that the Court expedite the Contempt Hearing. The Court indicated that it needed additional evidence of VSL's wrong doing in order to do so. As discussed above, MAXD is presently preparing that information.

March 24, 2016 - Unless expedited by the Court as discussed above, the Contempt Hearing will proceed on this date.

MAXD has been aggressively seeking, and will continue to aggressively seek, to obtain the rights and benefits accorded to it under its contract with VSL. We are confident that once the truth emerges, justice will prevail.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks, and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website http://maxd.audio or at http://www.sec.gov.

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