Nov. 13, 2011
/PRNewswire/ -- Shareholders of Digital Media Group Company Limited. (DMG) today said that they have begun taking steps to attach
of the assets of VisionChina Media Inc. (Nasdaq: VISN), pursuant to an order granted by the
New York State
The DMG shareholders, US-based Oak Investment Partners and
-based Gobi Partners (Oak and Gobi) said VisionChina's Notice of Appeal, which was filed on
Friday, November 11
, will have no impact on their actions to attach VisionChina's assets.
In his ruling granting Oak and Gobi's motion to attach, Judge
Charles E. Ramos
stated that Oak and Gobi, "have demonstrated that it is more likely than not [they] will succeed on the merit of [their] claims ... Drawing all legitimate inferences in their favor, the Sellers make a showing that the Merger Agreement is a binding and valid contract ... which VisionChina breached by failing to pay the first and subsequent payments due."
Commenting on VisionChina's Notice of Appeal,
, an attorney for Oak and Gobi and a partner of the law firm of Bergeson LLP said, "We are confident that the judge's order will be upheld on appeal. We intend to take action immediately to attach
of VisionChina's assets plan, pursuant to the court's order, and intend to file a summary judgment motion this week asking the Court to grant judgment on the entire
due under the Merger Agreement, plus other damages."
Oak and Gobi said they expect the total damages stemming from their lawsuit against VisionChina to exceed
. As of
June 30, 2011
, VisionChina reported having
in cash and cash equivalents on hand.
Oak and Gobi sued VisionChina for, among other things, willfully reneging on the first of two
payments in connection with VisionChina's
acquisition of Digital Media Group Company Limited. (DMG) in 2009. VisionChina paid the initial amount due, but failed to make the second payment of
. The final payment, which is also
, is due on
November 16, 2011
VisionChina sued Oak and Gobi for fraud, and sought to defend against Oak and Gobi's affirmative claims for payment based on the same purported fraud. The judge dismissed all fraud charges against Oak and Gobi, writing, "... it is plain that Visonchina is not able to maintain a viable cause of action for fraud (against Oak and Gobi)."