NEW YORK, June 13, 2014 /PRNewswire/ -- Ironridge Global IV, Ltd., an institutional investor in micro-cap public companies, received a clean bill of health in a Memorandum & Order from the United States District Court, Southern District of New York, in Case No. 14-cv-03945-WHP, which is available for review here.
In addition to finding lack of jurisdiction, federal judge William H. Pauley III completely rejected all of the false claims asserted by NewLead Holdings Ltd. (NEWL). Contrary to the frivolous accusations of NewLead, the federal court found that Ironridge has never manipulated NewLead's stock, and that Ironridge has no undisclosed brokerage relationships.
Judge Pauley's findings in favor of Ironridge include the following:
"Ironridge has submitted account statements for all its sales of NewLead shares, which show no short sales and account for all shares it has received." (Order, page 12.)
"Ironridge showed that NewLead miscalculated when it found that Ironridge exceeded the 10% cap on April 16-its only evidence of short selling." (Order, pages 12-13.)
"There is no evidence Ironridge has ever made a short sale of NewLead stock." (Order, page 13.)
"NewLead's share price has declined precipitously over a period of years. Ironridge had nothing to do with any of those declines." (Order, page 14.)
"Ironridge is responsible for only a small portion of NewLead's share dilution. NewLead will continue to hemorrhage common shares and dilute their value regardless of whether Ironridge is enjoined." (Order, page 14.)
"Ironridge agreed to accept cash instead of shares. But NewLead has refused to pay the cash." (Order, page 14.)
Ironridge showed in its Memorandum of Law that "NewLead's allegations that Ironridge breached certain of its contractual obligations and engaged in so-called market manipulation – which are based entirely on rank speculation without a shred of evidence – are all demonstrably false as evidenced by the indisputable trading records Ironridge has attached to the Brendan O'Neil Declaration. These trading records conclusively prove that Ironridge has never engaged in short selling, market manipulation or selling above the agreed volume limits." Ironridge will continue to fully live up to all of its obligations under the agreement.
Ironridge is represented by the law firm of Skadden, Arps, Slate, Meagher & Flom LLP.
About Ironridge Global
Ironridge Global IV, Ltd. is an institutional investor, making direct equity investments in micro-cap public companies. Ironridge is a British Virgin Islands business company that is a wholly-owned subsidiary of Ironridge Global Partners, LLC. The fund has entered into more than 60 equity financing transactions in the last three years, ranging from a quarter to $25 million each. Ironridge seeks to be a long-term financial partner, assisting public companies in financing growth and expansion by supplying innovative funding solutions and flexible capital.
SOURCE Ironridge Global IV, Ltd.