News Column

Shareholder files lawsuit against Medient Studios

June 29, 2014

By Julia Ritchey, Savannah Morning News, Ga.



June 29--A shareholder has filed suit against troubled Effingham County entertainment company Medient Studios.

June O'Hearn, a resident of Chatham County, filed suit against Medient and its board of directors in Effingham's superior court late Friday, a copy of which was provided to the Savannah Morning News.

The suit accuses the company of gross mismanagment, breaching its fiduciary duty through the dilution of stock and violating the Exchange Act through "false and misleading statements" to shareholders.

O'Hearn owns approximately 3 million shares of Medient stock, according to the filing, and is seeking unspecified damages.

The suit lists current board of directors Charles Koppelman, Joseph Giamichael, David Paterson, current CEO Jake Shapiro and former CEO Manu Kumaran as defendants.

Reached Friday, O'Hearn said she had no additional comment at this time.

Medient Studios is also being sued by its ex-CEO, Kumaran, who was summarily dismissed on June 9 by the board of directors. At that time, Shapiro was issued 40 million preferred shares as part of his promotion, a controversial decision among the company's investors.

Medient Studios reached an agreement with the Effingham County Industrial Authority to build a $90 million studioplex on its land in August of 2013, but has struggled to raise financing for the project.

On June 25, the Securites and Exchange Commission announced the temporary suspension of trading in shares of the company until July 9 due to concerns about the company's recent operations.

"The Commission temporarily suspended trading in the securities of MDNT because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company's total shares outstanding and its operations," said the press release.

Medient officials have not returned calls or e-mail for comment since June 12.

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(c)2014 Savannah Morning News (Savannah, Ga.)

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Source: Savannah Morning News (GA)


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