SOURCE: Composite Technology Corporation

Composite Technology Corporation

November 15, 2010 08:05 ET

Mercury Cable and Its President Todd Harris, Among Others, Sued for Malicious Prosecution, Abuse of Process and Civil Conspiracy

Action Stems From Their Conduct in Recently Dismissed Shareholder Derivative Action Case Against James T. Carkulis and Various Officers and Directors of Composite Technology Corporation

IRVINE, CA--(Marketwire - November 15, 2010) - Composite Technology Corporation (CTC) (OTCBB: CPTC) observes and announces that on October 29, 2010, James T. Carkulis ("Carkulis") filed suit against Mercury Cable & Energy, LLC, Mercury Cable & Energy, Inc. (both "Mercury"), Todd Harris ("Harris"), a founder and currently president of Mercury, and Brad Thomas ("Thomas"), the named plaintiff in the shareholder derivative action, among other defendants, in the Superior Court of the State of California for the County of Orange, Central Justice Center, for malicious prosecution, abuse of process and civil conspiracy stemming from the failed shareholder derivative action suit brought by Thomas against Carkulis and various officers and directors of CTC (Case No. 30-2009-00125211, filed in the Superior District of the State of California, County of Orange, Central Justice Center ("the Carkulis and CTC Derivative Action Litigation")).

The Carkulis and CTC Derivative Action Litigation
This case was filed by plaintiff Brad Thomas ("Thomas") on June 26, 2009. On May 14, 2010, the Court dismissed with prejudice all claims against Carkulis for failure to state a cause of action against him. On October 28, 2010, the Court dismissed with prejudice all remaining claims against the officers and directors of CTC. The presiding judge, the Honorable David R. Chaffee, in his final hearing on the matter on October 22, 2010, found that Thomas was not a qualified plaintiff under the applicable law. Discovery during the pendency of the case revealed conduct by Mercury and Harris intended to solicit Thomas to serve as the plaintiff, including a cash payment by Harris to Thomas in a restaurant parking lot. In his findings Judge Chaffee stated "... the facts of this case are unique and peculiar in my view, drawing all of the logical inferences from evidence presented in this case, it is clear to me that Mr. Thomas was nothing more than a straw man for Mercury, and he was, as I suggested earlier, in the very real sense, bought and paid for by Mercury. Why is this relevant here? Because at the end of the day, this case, based upon the inferences I draw, simply is a product of the manufacturer of Mercury and/or could be considered to be a conspiracy to conduct a form of legal and/or economic warfare against CTC."

Background litigation
CTC Cable Corporation, a wholly owned subsidiary of CTC, currently has two pending law suits against Mercury and various other defendants, including Harris. In these actions CTC Cable alleges that Mercury Cable's HVCRC conductor infringes two CTC Cable's patents for composite core and conductor technology (U.S. Patent No. 7,368,162 and U.S. Patent No. 7,211,319) and also alleges that certain of the defendants in one of those actions have committed federal copyright infringement. If the federal court finds Mercury Cable or any of the other defendants liable for patent or copyright infringement, the infringing parties will be liable to CTC Cable for actual and/or statutory damages, and the Court may also enter an injunction prohibiting further infringement by them. If the court finds that Mercury Cable or any of the other defendants have willfully infringed CTC Cable's patents or that the suit is exceptional, the defendants could be liable for up to treble damages and attorneys' fees. Any third party that makes, uses, sells, offers for sale or imports any infringing products of Mercury Cable or the newly-added defendants in the United States -- including third-party manufacturers or customers of installed Mercury Cable transmission lines -- may also be subject to suit for patent infringement and -- if found liable -- may be subject to damages and injunctive relief. 

About CTC:
Composite Technology Corporation's patented ACCC® conductor technology enables superior performance of high voltage transmission and distribution electrical grids. ACCC® conductors use CTC's proven carbon fiber core which is produced by its subsidiary, CTC Cable Corporation, at its Irvine, California headquarters and delivered to qualified conductor manufacturers who produce and distribute ACCC® conductors to operators of electrical grids worldwide. CTC's conductor technology significantly reduces thermal line sag and can replace similar diameter and weight traditional conductors with its higher capacity and more energy efficient ACCC® conductor. It is an ideal conductor for both upgrading existing power lines as well as building new lines since the technology allows for the reduction of the number of support structures and/or a reduction of their height. Since its commercial introduction in 2005, ACCC® conductor has been selected for over 6,000 miles (over 9,700 kilometers) of projects in all environmental and operating conditions, including severe heat and ice environments, long span applications and high capacity corridors for the modern grid. ACCC® is a registered trademark of CTC Cable Corporation.

For further information, visit our website: www.compositetechcorp.com or contact Investor Relations, James Carswell, +1-949-428-8500.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, resolution of pending and threatened litigation matters involving CTC or its subsidiaries, resolution of disputes with CTC's or subsidiaries' creditors competition with larger companies, development of and demand for a new technology, general economic conditions, the availability of funds for capital expenditure and financing in general by us and our customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2009 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

Contact Information

  • Contact Investor Relations
    James Carswell
    +1-949-428-8500