Looked up lawsuits and ZSTN and Richard Rappaport just in the process of settling a lawsuit filed by ROBERT SCOTT in March 2012. Here is the order shown below:
"IT IS HEREBY ORDERED PURSUANT TO THE STIPULATION, by and
21 between the undersigned counsel for the parties, that all proceedings in the above-
22 captioned action are adjourned pending the submission to the Court of a motion for
23 preliminary approval of the settlement, or as otherwise ordered by the Court,
24 including but not limited to the time for ZSTN, Zhong Bo, Zhong Lin, John Chen,
and Zeng Yun Su, and Kempisty to answer the Complaint, and the time for ZSTN
and Kempisty to answer the Cross-Claims.
The parties are to file a Joint Status Report on or before December 28, 2012,
2 unless the motion for approval has been filed. A
DATE: November 14 , 2012
4 HON. GARY ALLEN FEESS
5 U.S. DISTRICT JUDGE"
Case Development - Bruce Bronster, David Graff and Team Secure Win for Client in Delaware Chancery Court Case of First Impression
MARCH 08, 2013
On January 31, 2012, Bruce Bronster (Partner, New York), David Graff (Special Counsel, New York), Shveta Kakar (New York) and Mackenzie Brilling (New York) successfully caused the Delaware Chancery Court to issue an Order to Show Cause favoring our client, Peter E. Deutsch, and against ZST Digital Networks, Inc. ("ZSTN"), directing ZSTN to demonstrate why our client's request for a Contempt Order against the company and a put right at book value of at least $30 million dollar for his shares in the Company should not be granted.
The Contempt Order arises out of ZSTN's failure to comply with an Order the Firm previously obtained for our client, requiring ZSTN to produce its books and records for inspection and directing ZSTN to pay our client's counsel fees and costs associated with obtaining the Order. When ZSTN failed to comply with that Order, the Firm moved for contempt seeking, among other things, a put right at book value for our client. The issue of whether failure to produce books and records warrants a put right to an investor denied access was an issue of first impression for the Delaware Courts.
It appears as though Deutsch and Co. have won the first round in their attempt to be paid book value (which they, or someone determined to be $8.21 per share). Since ZSTN has refused to comply and rejected a request to make their books available they have put themselves in a very precarious position - However, they are a FREEKING Chinese company that has already proven to thumb its nose at its investors and disregard any attempts made to request information. Many Questions NOW - Is ZSTN really worth $8.21/share? Does ZSTN give a rat's _ _ _ about Deutsch and Co., now that they have all of their investment money? If Deutsch is able to secure $8.21/share for all of his shares will that bankrupt ZSTN? I'm certain that you can come up with many more questions. The bottom line is that all of this litigation and wrangling could take years and in the end there may be nothing left for us.
I am Long in this company and am very interested in what those of you, who are also investors in ZSTN have to say, regarding the unreliable nature of our relationship with ZSTN.
One last item - Who in the heck just bought 1700 shares - today?