Dismissing With Prejudice All Claims of Wrongdoing Alleged Against Him by MMC Energy, Inc.
MIAMI, Sept. 16 - Karl W. Miller today announced that the pending Federal suit brought by MMC Energy, Inc. against him, its founder and former Chairman and CEO, was dismissed almost in its entirety by the Federal Court in its September 14, 2009 decision. The Court granted Mr. Miller's motion to dismiss the Company's suit against him on all claims except for breach of contract.
The Federal Court ordered that all of the Company's claims of wrongdoing by Mr. Miller (i.e. fraud and tortuous interference with advantageous business relations) be dismissed with PREJUDICE, indicating that the Company failed to substantiate these false claims with any evidence whatsoever, and was only "vaguely" able to allege injuries sustained.
The Court's decision held that the Company failed to demonstrate that Mr. Miller made any misrepresentations or omissions with respect to any duty he owed to the Company after leaving. The Court also denied the Company's motion seeking a default judgment against Mr. Miller.
As to the remaining allegation of breach of contract, Mr. Miller, a well respected energy industry pioneer and icon, will vigorously defend himself against this claim and the evidence will demonstrate that this claim too is without merit.
Mr. Miller has filed a Federal action against the Company and its Directors in the United States District Court for the Southern District of Florida for damages in excess of $5,000,000 in addition to substantial punitive damages.
The Federal action filed by Mr. Miller alleges that George Rountree III, the lead independent director of the Company and Chairman of the compensation committee, Sylvia Rountree and Richard Bryan, Chairman of the governance committee, and Chairman and CEO Michael J. Hamilton for fraud, extortion, defamation and their intentional infliction of severe emotional distress.
The company announced that shareholders voted on September 14, 2009 to approve the complete dissolution and liquidation of the company and its assets. The Board of Directors and management of the Company have claimed in SEC filings it is the only alternative to bankruptcy under their stewardship.
George Rountree III and his wife Sylvia Rountree reside in Wilmington, North Carolina. George Rountree III is a partner at the law firm Rountree, Losee and Baldwin. Sylvia Rountree is a member of the Board of Trustees at the New Hanover Regional Medical Center in Wilmington, North Carolina.
George Rountree, who is a practicing lawyer in Wilmington, North Carolina and is also a member of the board of directors at Southern Union Company, will receive total compensation of at least $334,000.00 when MMC ceases to exist. The Rountrees' holdings are subject to review by the Securities and Exchange Commission ("SEC").
About Mr. Miller:
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980's and has an extensive background in banking, commodities trading and risk management.
Mr. Miller has a long history in the global energy business and has held a variety of executive management positions both within the United States, Europe and Asia. Mr. Miller has bid on over $25 billion in energy related assets during his career.
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricity de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Mr. Miller holds an MBA in Finance from the Kennan-Flagler Business School at The University of North Carolina, Chapel Hill. Mr. Miller also holds a B.A. in Accounting from Catholic University located in Washington DC.
Mr. Miller is currently on medical leave until late 2009.
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