Item 3. Legal Proceedings
ITEM 3. LEGAL PROCEEDINGS.
WizShop.com, Inc. ("WizShop"), one of our wholly-owned subsidiaries, filed a
lawsuit against Earthlink Network, Inc. and Earthlink Operations, Inc.
(collectively "Earthlink") on April 15, 2002 in the California Superior Court.
This suit alleged eight causes of action against Earthlink, including breach of
written agreement, promissory fraud, fraudulent concealment, breach of fiduciary
duty, constructive fraud, unfair business practices, accounting and constructive
trust. The suit arose out of Earthlink's breach of the written agreement with
WizShop, and Earthlink's apparent acts of fraud in connection with Earthlink's
failure and refusal to accurately account for and pay to WizShop revenues to
which WizShop is entitled to under the agreement. We sought monetary damages of
$20,000,000 for the above matter. On May 19, 2003, the parties reached a
settlement and signed a settlement and mutual general release agreement, in
which Earthlink agreed to pay to WizShop a total sum of $210,000.
We are not a party to any other legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matters were submitted to the Company's stockholders for consideration during
the fiscal quarter ended March 31, 2004.
PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.