This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AFH Issues Statement In Response To Its Litigation With Emmaus Life Sciences, Inc.

BEVERLY HILLS, Calif., Jan. 24, 2013 /PRNewswire/ -- AFH Holding & Advisory, LLC, a single member, family office and advisory firm issued the following statement in response to its litigation with Emmaus Life Sciences, Inc.

On December 27, 2012 Los Angeles Superior Court Judge Cesar C. Sarmiento entered a final order preventing Emmaus Life Sciences, Inc. from pursuing a lawsuit it had filed against AFH Holdings, Inc. and its principal Amir Heshmatpour.  AFH Holdings is currently engaged in litigation against Emmaus in Delaware for breach of contract and declaratory relief.

AFH's Suit in Delaware alleges that despite being engaged as the financial advisors to assist Emmaus in becoming a publically traded company, and to assist in further fund raising efforts, Emmaus refused to fully reimburse AFH for expenses incurred therewith.  Additionally, the suit alleges, Emmaus prevented AFH from completing the public offering, and that Emmaus failed to perform its obligations per the parties' agreement.  The suit seeks more than $8.2MM in damages against Emmaus.

In making its Order in Los Angeles, the Court stated that Plaintiff (Emmaus) "seized on an error in the Court's tentative ruling, and is attempting to exploit that error."  The Court found that Emmaus had "failed to make the necessary showing that this action is actually governed by a forum selection clause in a merger agreement, as opposed to the parties' LOIs" (letters of intent).  Those same LOIs are the basis of AFH's litigation against Emmaus in Delaware.

"Regardless of how Emmaus attempted to couch the litigation, it boils down to contract interpretation, and the first step in interpreting the contract is to recognize that there is no basis for a claim here in California" said David Beitchman, AFH's attorney.  "This ruling lends further support to our initial questions regarding the merits and the motives of Emmaus' actions."

About Beitchman & Zekian

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs