Private Shareholder Suit Continues in Las Vegas

Dec 7, 2011 9:30 AM PST

LAS VEGAS — A Las Vegas judge will hear tomorrow from Private Media Group's receiver in his bid to join with litigating shareholders in a motion on a number of key issues.

Private has been embroiled in a long-running shareholders suit that pits shareholders — led by Consipio Holding BV, Tisbury Services Inc., shareholder Claudio Gianascio and shareholder and former CEO Ilan Bunimovitz — against current front-office management.

Clark County Judge Elizabeth Gonzalez will decide whether to allow the receiver's request for joinder on:

  • The motion of Consipio Holding to confirm the right of shareholders to nominate an alternative slate of directors;
  • To reconfirm Consipio's voting rights to 5.6 million shares; and,
  • To confirm the arrangements for the 2011 annual shareholder meeting.

Gonzalez also will hear a motion to speed up those legal actions.

In August, Gonzalez entered an order appointing Eric Johnson, a Private director and CEO of Private division Sureflix, the receiver for the company.   

The receivership is the result of a judge's order in the shareholder suit. 

The plaintiffs claim the company has been rocked by embezzlement, among other charges, from moves by CEO Berth Milton and former directors.

The company's stock, now on the Pink Sheets, has dipped substantially in the past year. A year ago, the stock traded at about $1.60 a share.

Today, Private trades at about 24 cents a share.

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