Stonepath (AMEX:STG)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Stonepath Charts. Click Here for more Stonepath Charts.](/p.php?pid=staticchart&s=A%5ESTG&p=8&t=15)
Stonepath Group (AMEX: STG), a global logistics services
organization, today announced the dismissal of Ronald Jeffrey Neer v.
Dennis L. Pelino, et al., a derivative lawsuit filed on October 12,
2004 in the United States District Court in Philadelphia against
certain of the Company's present and former directors and officers.
The lawsuit was one of several filed after Stonepath announced last
fall that it would restate its financial statements for prior periods.
It alleged various breaches of state corporate law and a violation of
Section 304 of the Sarbanes-Oxley Act of 2002.
In dismissing the complaint in the derivative action, the Court
determined that the plaintiff did not have the right to bring a
private cause of action under Section 304 of the Sarbanes-Oxley Act of
2002 and declined to exercise jurisdiction over the other claims.
If the plaintiff chooses to proceed, he could either appeal the
district court's ruling to the United States Court of Appeal for the
Third Circuit or re-file a derivative lawsuit in state court.
The dismissal of this action does not affect the other actions
which are consolidated in In re Stonepath Group, Inc. Securities
Litigation, pending in the United States Court for the Eastern
District of Pennsylvania. Stonepath has also filed a motion to dismiss
that consolidated action.
"We believed from the beginning that this case had no foundation
and we are extremely pleased to have won our motion to dismiss,"
stated Dennis L. Pelino, Chairman of Stonepath.
About Stonepath Group (AMEX:STG)
Stonepath (www.stonepath.com) is a global, third-party logistics
organization providing a full range of transportation and distribution
solutions to multinational and local businesses. Through a strategic
acquisition strategy and strong organic growth, the Company has
expanded rapidly, establishing a network of owned operations
throughout the U.S., the Asia-Pacific region and Latin America.
Stonepath provides a full-range of time-definite transportation and
distribution solutions to a diverse client mix of retail leaders,
automotive and technology concerns, government agencies, and defense
contractors. For more information about the Company, please contact
John Brine at (212) 254-8280.