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.