SOURCE: Veltex Corp

March 12, 2010 08:00 ET

Veltex Commences Federal Litigation

CHICAGO, IL--(Marketwire - March 12, 2010) -  Veltex Corporation (PINKSHEETS: VLXC) ("Veltex"), announced that the corporation filed federal suit yesterday against numerous individual and corporate defendants previously associated with Veltex.

A multi-count complaint was entered in the United States District Court for the Central District of California, entitled "Veltex Corporation vs Javeed Azziz Matin, et al.," Civil Action No. 210-cv-01746-MRP-PJW. 

The prestigious Los Angeles law firm of Blecher & Collins, P.C. is counsel of record representing Veltex in this matter.

Among the individual defendants included is Javeed A. Matin, former President and CEO, who was removed from the corporation by Order of the Utah State Courts in Salt Lake City, Utah on July 21, 2008 in the matter entitled "Robert Fletcher, et al. v. Veltex Corporation, et al.," Civil Action No. 08-0907145.

The current complete slate of five board members was elected by shareholder vote and retained full control in August of last year of Veltex. R. Preston Roberts, of Phoenix, Arizona currently serves as Chairmen of the Board and Wayne H. Hanson, of Chicago, Illinois, also a board member, serves as Veltex's President and CEO.

The federal complaint alleges, among other things, damages and equitable relief for securities fraud, fraudulent transfer and conveyance of assets, conspiracy to breach and breach of fiduciary duty of the former officers and directors, professional negligence, breach of fiduciary duty and attorney malpractice of the attorneys and their respective firms and professional negligence and malpractice of accountants and their associated firms. The complaint reflects a claim for relief exceeding $35,000,000 among all defendants.

Veltex has also filed federal litigation against former Veltex receiver Lee G. Scharf in the United States District Court for the Central District of California in an adversary pleading entitled, "Veltex Corporation vs Lee G. Scharf," Civil Action No.2:09-AP-03558-SB alleging breach of fiduciary duty, among others, and seeking damages to the corporation.

Veltex will update shareholders and the public with developments as progress warrants.

Veltex Corporation maintains its corporate headquarters in Chicago, Illinois and has approximately 32,000,000 shares outstanding.

Safe Harbor Statement

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.

Contact Information

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    Veltex Corporation