CHICAGO, IL--(Marketwired - Jul 8, 2015) - CMG Holdings, Inc. (OTC PINK: CMGO), the following report from Glenn Laken, Chairman and CEO of CMG Holdings Inc., has been developed to bring CMG shareholders up to date with the most recent company events:
On June 30, 2014 CMG filed an amended complaint against former employees and officers of XA and the entities owned by them. CMG has been grievously harmed by the actions of this group and is determined to make certain this harm is repaired. Lawrence Steckman, the attorney representing CMG in this matter, is widely admired for his expertise and experience prosecuting civil racketeering cases worldwide, and has published extensively on the subject. It is his opinion that the case filed on behalf of CMG in New York's State Supreme Court against the former employees and officers of XA meets all the qualifications and requirements for a successful and sustained Civil RICO complaint. CMG, through the filing of this suit, seeks judgment against former XA executives and staff including, but not limited to, treble damages, attorney's fees and other costs under the RICO statute.
In other news, CMG has been in discussions with a number of groups pertaining to its subsidiary, Good Gaming, an e-sports gaming and tournament site that targets amateur gamers. In late December 2014 Good Gaming held a record-breaking debut tournament in coordination with Activision Blizzard -- but as a consequence of cash flow issues related to the massive conversion of assets by the defendants in the pending RICO case, was forced to throttle back spending on this exciting new start-up. In the intervening months Good Gaming has been working in-house on refining its product, and developing new ideas and applications while searching for additional investment -- in addition to exploring the creation of a spinoff for Good Gaming, in which CMG would maintain a substantial piece of the new entity formed.
As our long-term stockholders know, until mid-2014 XA was an essential asset of CMG, with millions of dollars in revenue. We anticipate that a successful judgment against the defendants of the current lawsuit will repair a substantial amount of the damage XA suffered as a result of their actions.
When I accepted the position of chairman at CMG Holdings in in April 2014, I had no way of knowing what damage had been done to CMG by a cabal of faithless XA employees over the course of a six year conspiracy -- nor any idea that in the first four weeks of my tenure these same employees would complete their devastating plunder of CMG through a series of coordinated thefts and resignations. I have spent the last year reviewing and collating the evidence they left behind; with a view towards bringing them to justice and restoring the losses shareholders have suffered as a result. After months working for no salary against headwinds that sometimes seemed impossible to master, it appears CMG may finally be on the verge of profitability and success, due in large part to the steadfast belief of our loyal shareholders, the determination of a dedicated group of Good Gaming and new XA staffers, and the talents of one of the most respected names in the legal profession.
I look forward to communicating with shareholders during the upcoming months with updates and developments concerning CMG's progress.