TORONTO, June 17 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") announces that Judge Fried of the Supreme
Court of the State of New York - New York County has issued his decision on
CoolBrands' June 8, 2007 motion concerning certain litigation brought against
the Company and its affiliates by Capricorn Investors III in connection with
the Americana Limited Partnership. Judge Fried granted CoolBrands' motion to
dismiss as to seven of the ten claims made by Capricorn in its complaint.
Judge Fried provisionally dismissed all of Capricorn's claims against
CoolBrands and its subsidiary company Integrated Brands, Inc. but permitted
the plaintiff an opportunity to re-plead its case to include these parties in
the complaint within the next 30 days.
All claims that Capricorn brought against individual officers and
directors of CoolBrands were dismissed.
Judge Fried dismissed Capricorn's claims alleging civil conspiracy,
breaches of fiduciary duty, fraud, negligent misrepresentation and promissory
He also dismissed the breach of contract action related to CB Americana's
filing of an involuntary petition in bankruptcy against the Americana
Judge Fried converted to a breach of contract claim Capricorn's
declaratory judgment claim involving the Change of Control provision in the
Partnership Agreement and also sustained its breach of contract claim for
alleged failure to submit operational and financial information pursuant to
that Agreement. Litigation continues on these points.
Commenting on the court's decision, Mr. Michael Serruya, President and
Chief Executive Officer of CoolBrands, stated "While we are still evaluating
the significance of this decision, we are extremely pleased by the ruling of
Judge Fried, particularly by his provisional decision to dismiss all of
Capricorn's claims against CoolBrands and Integrated Brands. However, we are
mindful that he did leave the door open for the plaintiff to re-plead its
case. In any event, we are ready to continue to vigorously defend against the
allegations made by the plaintiff."
Lead Counsel for Defendants in connection with this litigation is Michael
Campion Miller, Esq., of Steptoe & Johnson, LLP.
Forward Looking Statements
The information in this document contains certain forward-looking
statements with respect to CoolBrands International Inc., its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget", "may",
"will", "schedule" and "intend" or similar formulations. By their nature,
these forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business, economic,
competitive and other risks, uncertainties and other factors affecting
CoolBrands specifically or its industry generally that could cause actual
performance, achievements and financial results to differ materially from
those contemplated by the forward-looking statements. In view of these
uncertainties we caution readers not to place undue reliance on these
forward-looking statements. CoolBrands disclaims any intention or obligation
to update or revise any statements made herein, whether as a result of new
information, future events or otherwise.
For further information:
For further information: Ken MacKenzie, Telephone: (905) 479-8762