Veltex Corporation Awarded $102 Million by US District Federal Court

Mar 21, 2012, 12:41 ET from Veltex Corporation

CHICAGO, March 21, 2012 /PRNewswire/ -- Veltex Corporation-- OTC Markets symbol (VLXC)

A United States District Court in California has handed down one of the largest awards ever in the Central District of California in favor of Veltex Corporation, ("Veltex") a Chicago-based holding corporation.

On March 10, 2010, Veltex's attorneys filed a 96 page federal complaint on behalf of Veltex Corporation in the United States District Court, Central District of California (Western Division - Los Angeles) entitled, Veltex Corporation vs. Javeed Azziz Matin et al, case number 2:10-cv-01746-ABC-PJW. That case alleged damages from 22 individual and corporate defendants. The litigation which has been followed closely by legal scholars outlined a massive fraudulent conveyance and transfer count wherein millions of dollars of corporate assets were stolen by the defendants.

Chief US District Court Judge Audrey B. Collins ruled in favor of Veltex and against certain defendants directing the corporation to file a proposed final Order, which has been done. The corporation expects the Court to sign the final order on or before April 1, 2012.

The amount of the award exceeded $102 million dollars in which $100,078,621 in fraudulent conveyance and transfer damages to the corporation was found. The Court further ordered $793,442.86 in prejudgment interest to be paid to Veltex. The Court also ordered $2,005,172.42 in attorney's fees along with cost and expenses of $3,859.95 bringing the total amount of the award to $102,881,096.23.  The award will also carry post judgment interest annually as calculated by Federal rules.

Certain other defendants have settled with Veltex under strict confidential settlement agreements.

Veltex Chairman R. Preston Roberts, who was present in the courtroom when the ruling came down, stated: "The shareholders of Veltex can feel confident that this board will be working diligently to retrieve from this award every nickel, including interest, in any form available to us. This is a major development for Veltex and it's shareholders. The Board will be meeting post haste to develop a plan of action to maximize this asset on our balance sheet. I could not be more pleased with the efforts put forth by our consultants and attorneys in this stage of our asset recovery plan."

Veltex had retained the prestigious law firm of Blecher & Collins PC. Lead attorneys Maxwell M. Blecher, Maryann R. Marzano and Kristen M. Peters headed up the legal team. Merle L. Royce of the Law Firm of Merle L. Royce was Chicago counsel in the matter.

Blecher & Collins PC is recognized as one of the premier complex business litigation law firms in the country. Founded by Maxwell M. Blecher in 1971 and based in Los Angeles, California, the firm excels in handling a full range of complex business and commercial litigation. Blecher & Collins is uniquely positioned to provide unparalleled legal representation to Veltex with its team of highly experienced attorneys. Blecher & Collins has successfully prosecuted business and securities fraud claims, claims for embezzlement and banking fraud, and legal and accounting malpractice claims. Blecher & Collins has successfully challenged major corporations such as Eastman Kodak, Johnson & Johnson and AT&T, among others.  Blecher & Collins is an AV peer-review rated firm is proud to count among its alumni two California state court judges and a federal court magistrate. Details of the firm can be found at www.BlecherCollins.com.

Veltex will update shareholders with developments as progress warrants. Copies of the litigation can be found on the corporation's website at www.Veltex.com

Veltex Corporation maintains its' corporate headquarters in Chicago, Illinois.

Investor and Company Contact:
Veltex Corporation
312.235.4014

Safe Harbor Statement

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Veltex or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe Veltex's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

SOURCE Veltex Corporation



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http://www.Veltex.com