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Judge Rejects Quigley's Claims - Karkus Director Candidates Prevail in Federal Court
Date:5/18/2009

REASON NUMBER ONE: The Unwarranted Costs Charged to The Company In Trying To Prevent An Open Election.

  • This lawsuit has cost shareholders an enormous amount of money. How much of your Company's treasury has been tapped in a failed attempt to prevent us from offering you a choice in this election?
  • What purpose was served by bringing this lawsuit other than to try and prevent you, the shareholders, from having the ability to vote for new board members and to vote for change?

REASON NUMBER TWO: The Facts Regarding the Darius/Innerlight/Gary Quigley Transactions Show That Darius Is A Money-Maker And Gary Quigley Has Significant Interests in Darius.

  • It remains undisputed that Gary Quigley, brother of Chairman Guy Quigley, shows up as a large stockholder in Innerlight Holdings within days of the sale to Innerlight. And, we still do not understand why "royalties" are paid by Innerlight to ScandaSystems, an offshore company in which Gary Quigley is disclosed to be a principal and a major stockholder.
  • It remains undisputed that the incumbent board approved the Darius/Innerlight transaction.
  • It remains undisputed that they permitted the sale of Darius for a mere $1 million in cash plus assumption of certain Darius obligations, even though Darius had turned around and was profitable before the sale.
  • It remains undisputed that the buyer, Innerlight Holdings, has filed statements with the SEC reporting that the Darius business went on to generate impressive revenues and profits in 2008.
  • The Innerlight Holdings registration statements reported net sales of $2.188 million and Income from Operations of $131,369 for Darius (Innerlight Inc.) for the first two months of 2008 (before the sale). <
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SOURCE Ted Karkus
Copyright©2009 PR Newswire.
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