Los Angeles, CA (PRWEB) January 25, 2015
P. Vincent Mehdizadeh – Founder and Majority Shareholder of Medbox, Inc. (OTCQB: MDBX) – commented on the recent lawsuit commenced in California Central District Court (2:15-cv-00426-BRO-JEM) by a shareholder rights law firm.
Based on information provided to Mehdizadeh by his attorney, after a complaint has been filed, the plaintiffs must petition the court and ask that the case be certified as a class action lawsuit. In order to be certified as a class action case, there must be enough plaintiffs to make joinder of individual cases impractical and there must be common issues among the plaintiffs. Federal Rules of Civil Procedure and the Class Action Fairness Act of 2005 provide specific details about when a case qualifies for class action designation.
"I just wanted to clarify that one lawsuit was filed and announced on the company's ticker without, to my knowledge, obtaining the company's consent. Thereafter, 8 different Plaintiff's firms, or potentially just referral services, announced that same lawsuit, again without seeking the company's permission in citing the company's ticker symbol, in an effort to further solicit clients. It's a shame that we live in a 'sue first and get clients later' type of world but that is the reality," stated Vincent Mehdizadeh, Founder and Majority Shareholder at Medbox. "I was personally sued in the lawsuit and I can safely say that the allegations contained in the complaint are not accurate. During my tenure with the company I personally witnessed a very supportive shareholder base and I still believe the same holds true to this day. In addition, I will be personally engaging an independent public company accounting firm, on my own, to review prior periods as stated and address GAAP compliance, materiality, and fight this suit vigorously. Although this is not a formal company response on the matter, I needed to set the record straight and now I have."
About P. Vincent Mehdizadeh:
P. Vincent Mehdizadeh founded Medbox's main subsidiary, Medicine Dispensing Systems, in February 2008. He commenced operations for that company in 2010, and in December of 2011 sold that company to what became Medbox, Inc. Mr. Mehdizadeh served as senior consultant from December 2012 until May 10, 2013 for Medbox, Inc. and then transitioned to Chief Operations Officer and Board Chairman for Medbox, Inc. through May of 2014. Mr. Mehdizadeh was responsible for creating the 2 main patents behind the company's technology, helping to assemble the talented management team at Medbox, and also developing the concept behind the business models driving revenue for the company.
Source: P. Vincent Mehdizadeh