We can end the LEXG comparison today. After soaring some 87% today to $1.39, a late press release caused investors to dump the stock. The company responded with a press release of their own after hours. I have posted both below:
LOS ANGELES, Dec 8, 2011 (GlobeNewswire via COMTEX) -- Private investor, George Sharp, who has filed a civil action (Los Angeles County Division of California Superior Court Case No. BC461550) for Fraud, Negligent Misrepresentation, violation of California Corporations Code Section 25400, and violations of the California Business and Professions Codes 17200 (Unfair Business Practices) and 17500 (False Advertising) against Writers' Group Film Corp., Inc. ("Writers' Group") (PINK SHEETS:WRIT), its wholly owned subsidiary Front Row Networks, Inc ("Front Row"), and its current and former officers, announced today that several new Defendants have been added to his lawsuit.
According to Mr. Sharp, the naming of additional Defendants comes after he examined Writers' Group President and CEO, John Diaz, in a deposition in front of a court reporter on Tuesday, November 29, 2011.
Amongst the newly identified Defendants in the litigation are Armada International, Inc, Michael Sullivan, and Amwest Imaging, Inc (OTCBB: AMWI) insider, Phil Keuber and Christa Keuber, believed to be Phil Keuber's wife .
Mr. Sharp commented, "As a result of my research and Mr. Diaz's sworn testimony, I am now convinced that the newly added Defendants conspired to defraud the public by conducting what is commonly known as a Pump and Dump scheme. I believe that they executed a ruse in which Mr. Diaz was to receive financing and support from the Defendants for his projects, which were vended into Writers' Group, and once the Defendants divested themselves of their shares, the financing and support stopped. I believe that the Defendants used Mr. Diaz's reputation and background to their advantage and installed him as a figurehead while dumping their shares onto the public. Certified documents from the company's transfer agent show that on February 11, 2011, Diaz, Keubers, Sullivan and Armada collectively owned 110,000,000 of the 110,130,750 shares of Writers' Group issued and outstanding. On March 7, 2011, the day that the Writers' Group promotional campaign began in earnest, over 100,000,000 shares traded. These shares could only have come from some or all of the insiders. I am currently in the process of subpoenaing the transfer agent's records for the entire year." Mr. Sharp also noted that, in the course of his deposition, Mr. Diaz testified, under oath, that he has not divested himself of any Writers's Group stock and has offered to produce his original certificates as evidence.
Mr. Sharp, expressed concerns for investors of Amwest Imaging, an issue currently undergoing a heavy promotion campaign. According to the website www.pumpsanddumps.com, a website that has wrongly linked to Mr. Sharp, Amwest Imaging is following the same pattern as the Writers' Group scheme. As virtually all of Writers' Group stock was held by four individuals prior to its promotion, pumpsanddumps claims that SEC filings show that Mr. Keuber and his associates held 100% of of Amwest Imaging stock and that company installed a new President immediately before the promotion began, in order to give the appearance that Mr. Keuber has an arms-length relationship with the company.
Mr. Sharp added, "It is more than just a little disconcerting that both companies, as well as other failed public companies involving Mr. Keuber that have also undergone promotion campaigns, all share the same Beverly Hills address, and retain the services of corporate attorney, Ron Stauber."
In order to offer full disclosure, Mr. Sharp revealed that he is a former shareholder of Amwest Imaging, having divested himself of his stock once he realized Mr. Keuber's relationship to the company. Mr. Sharp currently holds no interest in Amwest Imaging stock.
Further and ongoing information about this lawsuit and a copy of the complaint as well as the aforementioned motion and opposition can be obtained at the website: www.sharp-v-writ.info . Get instant alerts about this lawsuit by becoming a follower at www.twitter.com/goniffs .
This news release was distributed by GlobeNewswire, www.globenewswire.com
EVANSVILLE, IN, Dec 08, 2011 (MARKETWIRE via COMTEX) -- Amwest Imaging Incorporated (OTCBB: AMWI) was the subject of a press release issued today by a George Sharp. Mr. Sharp has indicated that he has named the Company (and others) as an additional defendant in his lawsuit against Writers' Group Film Corp., Front Row Networks, Inc., Tal Kapelner, Ariella Kapelner, John Diaz and Does 1 through 50, inclusive, in the Superior Court of the State of California, County of Los Angeles, Central District, Case Number BC 461550.
Mr. Sharp's press release contains numerous misstatements of facts attributed directly to Mr. Sharp to include where the Company is located, the nature of the ownership of the Company, alleged relationships to others and a defamatory assertion that the Company is not successful. The Company is informed and believes that Mr. Sharp has filed similar civil actions against numerous other public companies alleging fraud, misrepresentation, violation of California Corporations Code and Business and Professions Code.
Mr. Sharp has indicated that he is a former shareholder of the Company. The Company has no relationships with any of Mr. Sharp's aforementioned named defendant companies or aforementioned named individuals. Mr. Sharp is not represented by counsel. The Company has not been served with the complaint.
The Company is examining its legal options which may be, but are not limited to, a lawsuit being filed with significant damages being sought. The Company intends to do everything possible to protect its shareholders from the potential damages caused as a result of this legal action.
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