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