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Rx Safes brings federal suit claiming unauthorized conversion of debt
By Wendy Van Sickle
Columbus, Ohio, Feb. 12 – Rx Safes, Inc. brought litigation in the Federal District Court for the Second Circuit in New York against the parties it claims committed a “sleight of hand” against the company by converting its debt instruments without authorization, according to a Friday press release.
The company filed the lawsuit against Kodiak Capital Group, LLC, Ryan Hodson, BMA Securities and Island Stock Transfer claiming fraud, breach of contract, conversion of property and Rule 10(b)-5 securities fraud violation.
“The company stands firm in its claims that the named parties violated Rx Safes’ rights and in doing so negatively affected our price per share and market valuation well in excess of $5 million in damages. We are committed to defending the company and protecting our shareholders to the fullest extent of the law,” Lorraine Yarde, Rx Safes’ chief executive officer, said in the release.
Rx Safes said it expects to ask the New York State Attorney General’s Office to monitor potential New York Penal Code violations as well as notifying the Financial Industry Regulatory Authority and the Securities and Exchange Commission to launch their own investigations to determine whether Kodiak Capital, BMA and Island Stock violated regulatory laws or rules.
“There was an obvious sleight of hand perpetrated against the company resulting in potentially millions of dollars of damages,” Mazin Sbaiti, who is representing Rx Safes, said in the release.
Sbaiti is with Texas-based securities litigation firm Steckler, LLP.
The Henderson, Nev., company designs, develops, engineers and markets fingerprint medical security storage solutions.
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