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27 Jul 2012 07:00
27 July 2012
Update re: litigation
The Board of Porta Communications plc ("Porta" or "the Company") is pleased to provide an update on the legal action against the Company and its Chief Executive and Chairman, David Wright by Media Square plc.
On 19 June 2012 Porta, together with David Wright in his personal capacity, made an application for summary judgment in respect of High Court litigation brought by Media Square plc and others (the "Claimants"). The aim of the application was to strike out all or part of the losses claimed by Media Square plc against the Company.
On 25 July 2012 Porta received judgment. The largest claim for loss, valued at £263,933, and worth approximately 40 per cent. of the value of the Claimants' entire claim, was struck out because it has no real prospect of success and therefore did not even justify a trial.
The Master expressed concern regarding the "considerable" evidentiary "hurdle to overcome" to prove the Claimants' stated case regarding incentive payments of £200,000 made to members of senior management. The judgment also stated that further outstanding evidence would be required to substantiate the Claimants' position regarding a number of other losses claimed, including in respect of forensic and legal costs valued at £124,600.
The Board of Porta continues to absolutely refute the remaining claims and will continue to defend them vigorously. A further update will be provided as appropriate.
Commenting on the judgment David Wright said "we are obviously delighted by the findings of the Master, and believe that our stance has been completely vindicated as a result. We will continue to contest vigorously any action the claimants may wish to continue with."
Enquiries
Porta Communications plc www.portacomms.com | ||
David Wright, Chief Executive | +44 (0) 20 7680 6500 | |
Keith Springall, Finance Director | +44 (0) 20 7680 6500 | |
Northland Capital Partners | ||
Tim Metcalfe / Lauren Kettle | +44 (0) 207 796 8800 | |
Newgate Threadneedle
|
Graham Herring, Managing Director |
+44 (0) 207 653 9850 |
Note to Editors
Summary judgment is a procedure by which a party can dispose of all or part of a claim without it proceeding to trial. The test for successfully obtaining summary judgment is high, as an applicant must show that the other party has no real prospect of success at trial. Claims (or parts of them) which have only a weak chance of success will still be permitted to proceed to trial and will not be eliminated at the summary judgment stage.
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