LSG Lawsuit Goes To Trial 29th September
Lighting Science Group (LSG) is a defendant in a lawsuit filed in June 2012, which is pending in the Ninth Judicial Circuit (the “Court”) in and for Orange County, Florida and is styled Geveran Investments Limited (“Geveran”) v. Lighting Science Group Corp., et al., Case No. 12-17738 (07).
On August 28, 2014, the Court issued an Order granting Geveran’s Motion for Partial Summary Judgment under its first cause of action for violation of the Florida Securities and Investor Protection Act. The Order on Geveran’s Motion for Partial Summary Judgment was granted against the Company and the other defendants in the lawsuit, which include J.P. Morgan Securities, LLC (“J.P. Morgan”) and two employees of J.P. Morgan; a former director and former interim chief executive officer of the Company; Pegasus Capital Advisors, L.P.; and the Company’s former chief financial officer. The first cause of action in the case seeks rescissionary damages with respect to the plaintiff’s $25 million purchase of Common Stock plus attorneys’ fees and costs. On August 28, 2014, the Court also entered an Order denying the Company’s Motion for Partial Summary Judgment on certain claims and issues. The trial in this lawsuit on Geveran’s common law claims is currently scheduled to proceed on September 29, 2014.
The Company believes that this lawsuit is without merit and intends to continue to vigorously defend this lawsuit. The Company believes that the Court’s partial summary judgment ruling in favor of Geveran was erroneous and intends to appeal it to the Florida Fifth District Court of Appeals. The Company cannot, however, predict the outcome of this matter.