DELRAY BEACH, Fla., March 21, 2005 (PRIMEZONE) -- Hard to Treat Diseases, Incorporated (HTTD) (Pink Sheets:HTDS) announces today that the Company has filed Motions to Dismiss Chapter 7 bankruptcy filings in Oklahoma by Gerry Knight ("Knight"), a defendant in the pending Federal litigation in the Southern District of Florida against Ronald Shinn ("Shinn"), Knight, and Shinn Capital Group, Inc. ("Shinn Capital").
In what the Company maintains is an attempt to circumvent the Federal Litigation, which is currently set for trial on the Court's May 2, 2005 trial docket, Knight has purported to initiate Chapter 7 bankruptcy filings in the state of Oklahoma for the two Oklahoma corporations the Company owns -- Hard to Treat Diseases, Inc. and T-19, Inc. HTTD has filed Motions to Dismiss those filings based on the following simple facts: HTTD owns 100% of the voting stock in both corporations which allows the Company to exercise control over those entities; Defendants resigned from HTTD on October 13, 2003, thereby eliminating any lawful ability of Shinn or Knight to exercise authority over those companies; neither Shinn nor Knight have any legitimate or lawful right to purport to sign any documents on behalf of HTTD-OK or T-19; and, as a result, Knight's statements and schedules in support of the bankruptcy filings are false, inaccurate and submitted without any lawful authority.
In the Federal litigation, one series of claims that the Company has asserted against Shinn and Knight is that they have unlawfully interfered and continue to interfere with HTTD's rights to its subsidiaries.
The Company has aggressively moved in the Bankruptcy Court to have the unauthorized and illegitimate filings dismissed, because HTTD, as the sole shareholder of the voting stock of its Oklahoma subsidiaries, has the sole right to appoint the officers and agents of those subsidiaries, which are not Shinn or Knight.
The Company is confident the bankruptcy filings will be dismissed based upon the facts and the evidence. As stated in prior press releases, Defendants previously attempted to bring a lawsuit in Oklahoma state court against HTTD and others to circumvent the pending Federal litigation -- the Court dismissed the case. The Company will vigorously pursue its claims against Defendants' for their latest attempt to interfere with HTTD's rights to its subsidiaries.
As a result of Defendant's attorneys withdrawing from representing Shinn, Knight, and Shinn Capital, the Federal Court issued an order on February 17, 2005 advising the Defendants they had fifteen (15) days to retain new counsel. The Defendant, Shinn Capital, was further advised that its failure to retain new counsel within the time designated by the Court might result in adverse sanctions, including entry of default judgment, against this Defendant. Defendants retained new counsel before the deadline.
Pursuant to the Court's previous advice and orders, the parties are scheduled to engage in continued negotiations and Court-ordered mediation this week.
Management's intention and goal with this litigation is to resolve the current dispute in the most efficient and economical manner to provide the maximum benefit to the Company and to HTTD's shareholders.
HTTD's shareholders and investors will be kept informed of all public developments as they occur regarding the above matters. In order to ensure the confidentiality of the Company's business and legal strategies, certain specific information may not be immediately available. Once such information can be revealed, it will be publicly disclosed to all shareholders.
HTTD is currently involved in litigation regarding the rights to Tubercin(r). Additional information and details regarding the litigation can be viewed at our website at: www.htdsotc.com.
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this news release may contain or constitute forward-looking statements. These forward-looking statements are based on current expectations and are subject to risk and uncertainties. In connection with the "safe harbor" provisions of the Private Securities Litigation Act of 1995, Hard to Treat Diseases, Inc. provides the following cautionary statement identifying important factors which, among others, could cause the actual results or events to differ materially from those set forth or implied by the forward-looking statements and related assumptions.