LOS ANGELES, Jan. 31, 2005 (PRIMEZONE) -- Former Victory Capital Holdings Corp. (OTCBB:VTYC) CEO George Sharp announced today that he has filed a civil action for Fraud, Negligent Misrepresentation, and Breach of Contract and has named Victory Capital, its former CEO and Chairman Harold Gregg and Michael Osborn, an undisclosed principal, whom Mr. Sharp identifies as the de facto head of Victory Capital. Mr. Sharp's action was filed in the San Diego County Division of California Superior Court and was served upon Victory Capital on December 28, 2004.
In his complaint, Mr. Sharp states that the Defendants named him CEO of Victory Capital on December 19, 2003 as documented in a Company news release. Mr. Sharp claims that although a contract was signed, he was not actually handed the duties of CEO and Gregg and Osborn continued to run the Company with little concern to Mr. Sharp. Company news releases during Mr. Sharp's tenure as CEO continued to identify Mr. Gregg as CEO.
Mr. Sharp also claims that compensations due under the terms of the contract remain unfulfilled. Mr. Sharp commented, "It was always a chore to collect my compensation from Victory. I agreed to take stock in Victory from Mr. Osborn in lieu of compensation due in December of 2003 and January of 2004. During April 2004, I verbalized my concerns to Mr. Osborn. Once my Counsel contacted Victory's Counsel, I was notified that my services were no longer required, contrary to the terms of the contract. The Company has stated in writing that I was not terminated for cause but for lack of finances."
The Complaint also accuses the defendants of making false representations to Mr. Sharp in order to induce him accept the position of CEO. The complaint states that these representations were made in order to induce Mr. Sharp to accept the position and enable the defendants to issue a press release in hopes of increasing the trading volume of Victory Capital shares.