FORT LAUDERDALE, Fla., Jan. 16, 2009 (GLOBE NEWSWIRE) -- Sonn & Erez announces that the U.S. District Court has certified a class action in a Ponzi scheme case, known as Katz vs. MRT Holdings, LLC, James Clements and Zeina Smidi, Case No. 07- 6143 8-civ-Cohn. Additionally, the Court has ordered that all investors in MRT choose whether to opt out of the pending class action by March 18, 2009, per the notice set forth below. In the case, it is alleged that James Clements and others operated a $50 million dollar Ponzi Scheme. The following is a Court ordered notice to all investors of MRT.
To: All Purchasers of Investment Contracts with MRT Holdings, LLC, who purchased said investment contracts from March 1, 2006 through October 5, 2007.
PLEASE READ THIS NOTICE CAREFULLY, IT MAY AFFECT YOUR LEGAL RIGHTS. This is a notification that you are a member of a plaintiff class (the "Class") in this case against MRT Holdings, LLC, James Clements and Zeina Smidi ("Defendants") in the United States District Court, Southern District of Florida, styled Marvin Katz, et al. on behalf of himself and all others similarly situated, vs. MRT Holdings, LLC, James Clements and Zeina Smidi, Case No. 07- 6143 8-civ-Cohn (the "Lawsuit").
The purpose of this Notice is to explain to you: (1) the nature of the Lawsuit and the Class claims, issues or defenses; (2) the definition of the Class; (3) that a Class member may enter an appearance through an attorney if the member so desires; (4) that the court will exclude from the Class any member who requests exclusion; and (5) the binding effect of a Class judgement on Class members.
1. The Nature of the Action and the Class Claims, Issues or Defenses: In this lawsuit, Plaintiffs alleged that MRT Holdings, LLC was a Ponzi scheme (an investment scam where earlier investors are typically paid back with monies invested by later investors) and that both James Clements and Zeina Smidi operated MRT, including the sale of unregistered securities and otherwise failing to disclose material information to investors. MRT Holdings, LLC, Clements and Smidi have defaulted the Lawsuit, which means that the factual allegations against these Defendants are assumed to be true for purposes of the Lawsuit. The purpose of the lawsuit is to try to obtain a judgment against MRT, Clements and Smidi, and then try to collect on that judgment for the benefit of all investors. No final judgment has yet been entered in this case and the case is currently pending. The Court has certified this case as a class action, that is, a case that will proceed on behalf of all investors in MRT unless that investor "opts out" and excludes himself/herself from the class. Plaintiffs seek to recover money damages from the Defendants. Defendants have denied the allegations of the lawsuit. No final ruling has been made on these claims.
2. The Definition of the Class Certified: The Class consists of: All Purchasers of Investment Contracts with MRT Holdings, LLC, who purchased said investment contracts from March 1, 2006 through October 5, 2007. If you invested with MRT during these dates, you are considered a member of the class. The class excludes all Defendants.
3. The Court has appointed Sonn & Erez, PLC as counsel to the Class. These attorneys will represent you as a part of the class unless you choose to hire your own attorney. You have the right to hire your own attorney, at your own expense, but do not have to do so.
4. Exclusion from the Class: If you wish to remain in the Class YOU DO NOT NEED TO TAKE ANY ACTION. However, to facilitate any potential recovery, you should contact Class Counsel at your earliest possible convenience to discuss your potential damages. If you exclude yourself from the Class you will not participate in any settlement or favorable judgment in the Lawsuit but you also will not be bound by an unfavorable judgment. Your request to be excluded from the class must be in writing and must provide your name and address and a statement that you wish to be excluded from the Class in Katz, et al vs. MRT Holdings, LLC et al. This statement must be sent by first-class mail, postmarked not later than March 18, 2009, addressed to the Class Counsel listed below. If you request exclusion on behalf of anyone other than yourself you must describe your legal authority to make this request. Class Counsel: Jeffrey R. Sonn, Esq., Sonn & Erez PLC, 500 East Broward Blvd., Suite 1600 Fort Lauderdale, FL. 33394.
5. If you remain in the Class you will be bound by any decision, favorable or unfavorable, in this case, and may not file your own independent case.
FURTHER COURT PROCEEDINGS
The Court will proceed to decide the merits of Plaintiffs claims as asserted in the Lawsuit. Either party could prevail on the merits.
HOW TO GET MORE INFORMATION
The pleadings and other records in this litigation, including copies of the Class Action Complaint and the Class Certification Order, may be examined during regular office hours at the Offices of Class Counsel. If you need additional information, you should write to Class Counsel at info@sonnerez.com DO NOT CALL THE COURT OR THE DEFENDANTS.