MESA, Ariz., Aug. 12, 2003 (PRIMEZONE) -- Viastar Holdings, Inc. (OTCBB:VISH) announced today that the U.S. District Court for the District of Arizona, on August 6, 2003, issued Viastar a temporary restraining order prohibiting David Dadon from representing to any person or entity that he is Chairman or a member of the Board of Directors of Viastar or any other officer, employee or agent of the company. The Court also prohibited Dadon from representing that he is authorized to enter into agreements or make statements on or behalf of Viastar. The Court, in agreement with Viastar's position, specifically found that the company and its shareholders would suffer irreparable harm if a restraining order was not issued against Dadon and that the company is likely to succeed on the merits of its claims against him.
On May 28th of this year, Viastar's shareholders removed Dadon from the company's Board of Directors, and thereby ended his tenure as Chairman of the Board.
In addition to its federal court lawsuit against Dadon, Viastar has also filed a state court lawsuit against him in Phoenix, Arizona. The company's state court complaint is seeking millions of dollars in compensatory and punitive damages from Dadon. The multi-count complaint asserts several claims against him, including that he has been intentionally and unlawfully interfering with Viastar's business and contractual relationships, committed fraud on the company and its shareholders, and breached various duties including his fiduciary duties to the company, and its shareholders that he owed while he was a member of Viastar's Board of Directors.
Viastar is also mounting a vigorous defense against a lawsuit that Dadon recently filed in a California state court. Richard L. Brooks, Viastar's General Counsel and lead trial attorney, stated that, "This appears to be another example of Mr. Dadon's penchant to manipulate the legal process for improper purposes. The claims and allegations in his complaint are utterly groundless and completely without merit. Be assured that Viastar intends to vigorously defend against those claims to the fullest extent of the law, and expects the lawsuit to be dismissed by the state court."
John D. Aquilino, who recently was named Viastar's President, had the following comments about Viastar's recent success against Dadon in the U.S. District Court: "We are grateful for, but not surprised by, the Court's decision to restrain Dadon. It is obvious his attempts to interfere with and damage Viastar's business were not, and will not be, taken lightly. In my opinion, the acts of Dadon have been nothing short of criminal, and it's time that his tactics are stopped. Viastar plans to do just that."
In addition to suing Dadon in the federal and state courts, Viastar has also filed a complaint with the Securities and Exchange Commission (SEC), alleging additional violations of the securities laws.
About Viastar Holdings:
Viastar Holdings, Inc. is engaged in development, production and distribution of entertainment related media for film, television, music and publishing interests. The Company's portfolio currently includes ownership of Electric Kingdom Distribution, A.V.O. Studios, Moving Pictures International, Black Top Films, Black Top Pictures, Quadra Records, All-4 Entertainment, Inc., and Picture Perfect Releasing, Inc.
Except for historical matter contained herein, the matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.