16 Jul 2010 16:43
Formation Group plc ("Formation" or the "Company")
Update on Litigation
Further to a judgement delivered at the Manchester Mercantile Court on 15 July 2010 and the recent coverage in the press, the Company provides the following update in relation to the litigation being conducted through its wholly owned subsidiary, Proactive Sports Management Limited ("Proactive"):
Claims against Stoneygate 48 Limited ("Stoneygate")
·; Proactive's claim against Stoneygate, a company owned by Mr Wayne Rooney, was two pronged; the first claim related to the enforcement of the contract relating to an image rights representation agreement dated 16 January 2003, and the second claim related to restitutionary compensation for services provided by Proactive to Stoneygate for which Proactive has not been paid.
·; Under the judgement delivered yesterday, the first claim in contract was unsuccessful, but, importantly, Proactive did succeed in its claim under restitution. The counterclaim of Stoneygate was defeated in its entirety. Stoneygate will therefore have to pay compensation to Proactive as a result of yesterday's judgment. This figure cannot yet be quantified because the Court has decided that such quantification should be the subject of further assessment.
Claim against Speed 9849 Limited ("Speed")
·; Proactive succeeded in its claim against Speed, a company owned by Mrs Coleen Rooney, and has been awarded approximately £90,000 plus a substantial proportion of its costs.
David Kennedy, CEO of the Company, commented: "We are pleased with the successful restitutionary claim against Stoneygate and look forward to the receipt of compensation payments in due course which we believe should be substantial."
Contact Details
Formation Group PLC
David Kennedy
Chief Executive Officer
Tel: 020 7920 7590
NOMAD to Formation Group PLC
Zeus Capital Limited
Ross Andrews Tel: 0161 831 1512
Tom Rowley