Green Planet Group Subsidiary Files Law Suit
SCOTTSDALE, Ariz., July 26, 2010 (GLOBE NEWSWIRE) -- Green Planet Group, Inc. (OTCBB:GNPG) announced today that its wholly owned subsidiary, Lumea, Inc., has filed a breach of contract and fraud by inducement complaint in the Superior Court of the State of Arizona on or about July 7, 2010. The defendants are Easy Staffing Services, Inc., ESSI, Inc. and Easy Staffing Solutions, Inc. (the "Easy Staffing Companies") which are the companies that entered into an Asset Purchase Agreement pursuant to which their assets were sold to Lumea, Inc. The terms of the Agreement called for Green Planet Group to issue 15 million shares of common stock to the shareholders of the Easy Staffing Companies and for Lumea to issue two promissory notes totaling $8,250,000.
After the Easy Staffing Companies' previous management team resigned or was terminated, the new management team discovered numerous fraudulent schemes, misrepresentations and illegal activities which represent the basis for this law suit. Therein, Lumea requests judgment for damages to be determined at trial of not less than $12,000,000, recession of the Asset Purchase Agreement, and the cancellation of the 15 million shares of stock issued to the shareholders of the Easy Staffing Companies. The Company expects to prevail and, at a minimum, to be able cancel the current debt associated with this transaction and the stock issued to the Easy Staffing Companies. The impact to Green Planet Group would be a reduction of $4,805,568 or 44% of its current debt, reduction in goodwill of a like amount, and the number of issued and outstanding shares would be reduced by 15,000,000 resulting in approximately 135,000,000 shares issued and outstanding equal to a reduction of 10%.
In addition, JG Staffing, Inc. was named as a co-conspirator particularly as it relates to defrauding Lumea's Workers Compensation Insurance provider and using its relationship to defraud the government's Minority Business Enterprise Program. Lumea's new management team immediately terminated these fraudulent activities as soon as they were uncovered.
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