AFH Issues Statement in Response to its Litigation with Emmaus Life Sciences, Inc.
BEVERLY HILLS, Calif., Jan. 24, 2013 /PRNewswire/ -- AFH Holding & Advisory, LLC, a single member, family office and advisory firm issued the following statement in response to its litigation with Emmaus Life Sciences, Inc.
On December 27, 2012 Los Angeles Superior Court Judge Cesar C. Sarmiento entered a final order preventing Emmaus Life Sciences, Inc. from pursuing a lawsuit it had filed against AFH Holdings, Inc. and its principal Amir Heshmatpour. AFH Holdings is currently engaged in litigation against Emmaus in Delaware for breach of contract and declaratory relief.
AFH's Suit in Delaware alleges that despite being engaged as the financial advisors to assist Emmaus in becoming a publically traded company, and to assist in further fund raising efforts, Emmaus refused to fully reimburse AFH for expenses incurred therewith. Additionally, the suit alleges, Emmaus prevented AFH from completing the public offering, and that Emmaus failed to perform its obligations per the parties' agreement. The suit seeks more than $8.2MM in damages against Emmaus.
In making its Order in Los Angeles, the Court stated that Plaintiff (Emmaus) "seized on an error in the Court's tentative ruling, and is attempting to exploit that error." The Court found that Emmaus had "failed to make the necessary showing that this action is actually governed by a forum selection clause in a merger agreement, as opposed to the parties' LOIs" (letters of intent). Those same LOIs are the basis of AFH's litigation against Emmaus in Delaware.
"Regardless of how Emmaus attempted to couch the litigation, it boils down to contract interpretation, and the first step in interpreting the contract is to recognize that there is no basis for a claim here in California" said David Beitchman, AFH's attorney. "This ruling lends further support to our initial questions regarding the merits and the motives of Emmaus' actions."
About Beitchman & Zekian
Beitchman & Zekian focuses on four core practice groups. The Firm offers "big-firm know how" while maintaining a level of individual service most large law firms cannot. The firm was established to offer our clients an effective and efficient alternative to the large, institutional law firm, and to provide a cost-effective economic solution to our client's legal needs. Our knowledgeable and experienced attorneys are dedicated to providing innovative, creative and sound, legal and business counseling. Regardless of your business size or legal needs, we have the skills and resources to be an integral component in the success, growth, and protection of you and/or your business.
About AFH Holding & Advisory, LLC
AFH Holding & Advisory, LLC is a single member, family office and advisory firm serving U.S. and international clients who seek capital formation and business strategies including the preparation and implementation of alternative public offerings, PIPE financing, acquisitions, corporate governance development, regulation and compliance, among other services, all executed concurrently to provide a seamless transition from private to public status. By delivering objective thinking, proven practices and best-of-breed partners, AFH helps both public and private clients achieve their specific development and financial goals. AFH is a licensed lender in the State of California. For more information, please visit http://afhholdingandadvisory.com
SOURCE AFH Holding & Advisory, LLC