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Legal Notice

On February 8, 2011, (Doc. 11CV877 US), CGM Applied Security Technologies, Inc., a New Jersey Corporation and Applied Security Innovations, Inc., a Delaware Corporation, filed suit in the Federal Court Southern District of New York, seeking both injunctive and monetary relief against Erik Hoffer, CGM Security Solutions, Inc., a Florida Corporation dba Rig Secure, Inc. and Navatech Container Security, LLC, a Florida Limited Liability Company, and Navatech USA, LLC, a Florida Limited Liability Company and Elizer Navarsky.

The Complaint alleges that Defendants, individually and severally, conspired to wrongfully and materially interfere with the business operations of the Plaintiffs by publishing false statements to the customers and investors, concerning the Plaintiffs' financial position. The Complaint further alleges that Defendants, jointly or severally, competed in violation of the Restrictive Covenant as part of the acquisition of Defendant Hoffer's company. The Complaint further alleges that Defendants, individually and severally, acted to divert commercial transactions away from Plaintiffs causing Plaintiffs to experience losses in sales and good will.

Filed simultaneously with the Complaint, is an application (Order To Show Cause) for Injunctive Relief, seeking suspension of Plaintiffs obligation to remit additional sums required as part of the acquisition. The application is supported by the Certification of Anthony Shupin, Plaintiffs' President, who asserts that the wrongful acts of Defendants have had a deleterious affect and seeks a Court Order authorizing the suspension of payments until further Order from the Court. Mr. Shupin's Certification states that all required past payments have been satisfied.