Veltex Corporation Awarded Damages on All Counts

CHICAGO, March 28, 2012 /PRNewswire/ -- Veltex Corporation-- OTC Markets symbol (VLXC)

A Final Judgment was signed and entered yesterday by a United States District Court Judge in California.  In one of the largest civil awards ever in the Central District of California, Chief US District Court Judge Audrey B. Collins entered the Order and terminated the case in favor of Veltex ("Veltex") a Chicago-based holding corporation, on all counts.

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 federal litigation outlined a massive fraudulent conveyance and transfer count wherein millions of dollars of corporate assets were stolen by the named defendants.

The amount of the final award exceeded $102 million 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. The Court also found certain defendants to be liable to Veltex both jointly and severally. The Court will retain jurisdiction over all other defendants who had previously settled with Veltex. Certain defendants had settled with Veltex under strict confidential settlement agreements.

Veltex retained the Los Angeles law firm of Blecher & Collins PC. to bring the complaint, on behalf of the corporation, in California federal court.  Lead attorneys Maxwell M. Blecher, Maryann R. Marzano and Kristen M. Peters represented Veltex. Merle L. Royce of the Law Firm of Merle L. Royce was Chicago counsel in the matter for the corporation.

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

Veltex Corporation, a Chicago-based holding 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