BIRMINGHAM, Ala., May 20 /PRNewswire/ -- Four Star Holdings, Inc. [FSTH] and related entities have recently been served with a lawsuit filed in Federal District Court in Birmingham, Alabama. Filed by high profile attorney Jim Parkman and his partner Martin Adams of the Alabama law firm Parkman, Adams & White, LLC (http://www.parkmanlawfirm.com), the lawsuit claims the Florida corporation, operating out of offices in Odenville, Alabama, breached several agreements with Dallas, TX based Cirrus Holdings, Inc.
According to the lawsuit, Four Star, a real estate brokerage and development company, entered into several advisory and consulting services agreements with Cirrus in an effort to restructure and raise capital through a reverse merger with an already existing publicly reporting corporation. The lawsuit claims that after Cirrus identified a suitable public corporation and performed extensive work to prepare to enter the public markets, Four Star breached these agreements with Cirrus. Cirrus claims to have been entitled to, yet denied ownership of five percent of the outstanding shares of Four Star upon acquisition of the new company.
In addition, the court filing accuses board members, Bobby Smith, Jr. and Fran Mize of negligently and wantonly failing to abide by the alleged existing agreements with Cirrus and its principal, Richard Woods. "Mr. Woods and his team, at the request of Four Star, moved to Alabama on the promises of Mr. Smith and Ms. Mize. He expected to get paid but didn't. He wasn't even reimbursed for his expenses," stated Parkman. "Now the company has gone public, but they have failed to honor their obligations and have failed to give Mr. Woods the stock he is owed under the agreements, not to mention his money. This cannot be allowed to happen in Alabama," argued Parkman.
"Mr. Woods was forced to turn to the Courts to remedy the injury that was inflicted on him. Mr. Parkman and I look forward to representing Richard in this case and giving him his day in court," concluded Martin Adams. "Ultimately, Mr. Woods was left with no choice."
Parkman, Adams & White, LLC is a nationally recognized law firm who gained fame after their successful representation of former HealthSouth CEO Richard Scrushy in the first successful defense of a corporate executive charged under the Sarbanes-Oxley Act.
SOURCE Parkman, Adams & White, LLC