Feb 17, 2003 : CommuniTech Founders Sue Interland
📅 - According to reports released this week, the founders of Web hosting company CommuniTech.Net are suing Interland Inc. for $26.7 million, just one year after selling their business to the hosting giant in February 2002.
Through the lawsuit, CommuniTech.Net co-founders Gabriel Murphy and Bryan Heitman allege that Interland has stalled the registration of the 5.375 million shares of stock Murphy and Heitman received through the sale of CommuniTech.
Since the sale, says the lawsuit, they have not been able to trade the stock that, at the time of the sale, was estimated to be worth $11.2 million. Interland says it has made three attempts to register the stock, which lost nearly half its value in 2002.
Murphy and Heitman are suing Interland for breach of contract, negligent misrepresentation, fraudulent misrepresentation and fraudulent nondisclosure, among a total of 12 counts. Interland said the company's policy is not to comment on litigation.
Interland previously said the lawsuit would not solve the stock registration problem. The company says the Securities and Exchange Commission has been slow to register the shares because of corporate governance rules, responding to Interland's attempts to register the shares with additional questions.
Through the lawsuit, CommuniTech.Net co-founders Gabriel Murphy and Bryan Heitman allege that Interland has stalled the registration of the 5.375 million shares of stock Murphy and Heitman received through the sale of CommuniTech.
Since the sale, says the lawsuit, they have not been able to trade the stock that, at the time of the sale, was estimated to be worth $11.2 million. Interland says it has made three attempts to register the stock, which lost nearly half its value in 2002.
Murphy and Heitman are suing Interland for breach of contract, negligent misrepresentation, fraudulent misrepresentation and fraudulent nondisclosure, among a total of 12 counts. Interland said the company's policy is not to comment on litigation.
Interland previously said the lawsuit would not solve the stock registration problem. The company says the Securities and Exchange Commission has been slow to register the shares because of corporate governance rules, responding to Interland's attempts to register the shares with additional questions.
Reads: 1959 | Category: General | Source: TheWHIR : Web Host Industry ReviewsURL source: http://www.thewhir.com/marketwatch/com021703.cfm
Company: communitech.net [communitech.net -> web.com]
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