LEGAL PROCEEDINGS.
−Removed: Semotus is the defendant in one pending legal proceeding and one of Semotus'
−Removed: wholly owned subsidiaries, Wizshop.com, Inc., is the plaintiff in one pending
−Removed: legal proceeding.
−Removed: The suit in which Semotus is the defendant was filed by Brown
−Removed: Simpson Partners I, Ltd.
−Removed: on March 7, 2002 in the Supreme Court of the State of
−Removed: This suit alleges four causes of action for breach of contract.
−Removed: Complaint claims that Semotus triggered the anti-dilution provisions in Brown
−Removed: Simpson's Warrants and Series B Preferred Stock, thus obligating Semotus to
−Removed: issue substantial numbers of additional shares upon conversion of the Preferred
−Removed: Stock and exercise of the Warrants.
−Removed: Brown Simpson seeks an order granting
−Removed: specific performance, money damages in excess of $25,000, and recovery of costs
−Removed: and prejudgment interest.
−Removed: We believe the suit is without merit and intend to
−Removed: vigorously contest the suit.
Wizshop.com, Inc., one of our wholly-owned subsidiaries, filed a lawsuit against
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damages for the above matter.
+Added: On May 19, 2003, the parties reached a settlement
+Added: and signed a settlement and mutual general release agreement, in which Earthlink
+Added: agreed to pay to WizShop a total sum of $210,000.
+Added: Semotus and WizShop were dismissed with prejudice on March 7, 2003 from a class
+Added: action lawsuit brought by the California Teachers' Retirement System in November
We are also a party to other legal proceedings in the normal course of business.
Based on evaluation of these matters and discussions with counsel, we believe
−Removed: that liabilities arising from these matters will not have a material adverse
−Removed: effect on our consolidated results of operations or financial position.
+Added: that any potential liabilities arising from these matters will not have a
+Added: material adverse effect on our consolidated results of operations or financial
SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.