JENSEN BEACH, Fla., Nov. 9 /PRNewswire-FirstCall/ -- Regency Affiliates,
Inc. (RAFI.OB) announced today that the Court in the action entitled Gatz et
al. v. Ponsoldt, Sr., et al. pending in the New Castle County Court of
Chancery, Delaware dismissed all but one claim alleged in the complaint.
Management believes that the sole surviving claim, which relates to the
December 2001 sale of assets from one Regency subsidiary to another Regency
subsidiary, is without merit and, even if successful, would not be material to
the Company or its financial condition.
The complaint had challenged several transactions that occurred between
2001 and 2003, including Regency's October 2002 recapitalization and the 2003
payment of accrued compensation to the Company's former president. In
dismissing the claims, the Court determined that all of the claims (other than
the claim related to the 2001 asset sale) were derivative in nature and that
the claims could therefore not be maintained. A copy of the Court's opinion
will be available in due course on the Company's website
Reacting to the Court's decision, Laurence S. Levy, Regency's President
and Chief Executive officer, said: "We are delighted with the Court's
decision. Shareholders should be pleased that the Company will no longer need
to allocate its resources to defending the dismissed claims."
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. Statements in this press release may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any statements contained herein which are not statements of
historical facts and that address activities, events or developments that
Regency or its management expects, believes or anticipates will or may occur
in the future shall be deemed to be forward-looking statements. Forward-
looking statements are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy and some of which might not be
anticipated. Future events, actual results of performance, financial or
otherwise, could differ materially from those set forth in or contemplated by
the forward-looking statements herein. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. Regency undertakes no obligation to release publicly any
revisions to these forward-looking statements that may be made to reflect
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this press release
does not constitute an admission by Regency or any other person that the
events or circumstances described in such statement are material.
SOURCE Regency Affiliates, Inc.