MIAMI, Sept. 18 /PRNewswire/ -- Karl and Ashley Miller, through their attorney Mark D. Johnson, today announced that they have formally requested the SEC, through its New York office, to require MMC Energy, Inc., (NasdaqGM: MMCE) to disclose to its shareholders the company's involvement in complex material litigation that will reduce the assets of the company available to distribute to shareholders.
In their letter to the SEC, the Miller's referenced MMC's announcement on Monday, September 14, 2009, that it would be vigorously prosecuting a case filed against Mr. Miller by the company in May of 2008 in Federal District Court for the Southern District of New York.
On Monday, September 14, 2009 District Judge Deborah A. Batts, dismissed all of MMC's claims against Mr. Miller except a breach of contract claim related to his Separation Agreement with the company. In their letter to the SEC, Mr. Miller pointed out that as the company Founder he, his wife and family members own a substantial number of shares in MMC.
Due to their family's large shareholdings in MMC, Mr. Miller had agreed to accept less compensation from MMC than his employment contract required, avoiding having the company use its assets in litigation over the precise amount to be paid. As a result, the Millers pointed out in their letter to the SEC, MMC's pursuit of this lawsuit, even if successful, will likely result only in stockholder assets being paid to the law firm of Kasowitz, Benson, Torres and Friedman, LLP without any corresponding benefit to MMC shareholders and without any doubt could never exceed the cost of prosecuting the case.
On Tuesday, September 15, 2009, MMC announced that the shareholders had approved the Company's Plan of Complete Liquidation and Dissolution, and in a similar press release that day, MMC announced that it would be defending Chairman and CEO Michael J. Hamilton and Directors George Rountree, III, and Richard H. Bryan, in a lawsuit the Miller's have filed in Florida. That lawsuit alleges conduct by Hamilton, Bryan, Rountree and Rountree's wife Sylvia in furtherance of their own pecuniary self-interest and as part of a conspiracy to enrich themselves using MMC's assets.
The Millers stated in their letter to the SEC that using MMC funds specifically designated to be distributed to shareholders in under the liquidation plan to defend officers and directors named in the Florida lawsuit was inappropriate, particularly where funds that could have been returned to stockholders were also utilized to procure insurance for the directors against such claims.
In its SEC filings MMC has failed to acknowledge even the existence of these multiple litigation matters or tell shareholders how much it is paying attorneys at the Kasowitz Benson, Torres and Friedman, LLP and other law firms to pursue these cases.
Mark D. Johnson, Esq.
CONTACT: Mark Johnson, Esq., +1-772-223-7700
Web Site: http://www.mdj-law.com/
