SuperGroup Regulatory News (SGP)

10 Jul 2006 07:01

Sanctuary Group PLC10 July 2006 10 July 2006 The Sanctuary Group plc (the "Company") Update on Litigation The Sanctuary Group plc, the international music group, today announces that ithas now successfully finalised an agreement with a number of its former Urbanartist managers which brings a close to certain litigation. In the prospectus issued by the Company on 21 February 2006, the Companyreferred to the fact that Music World/Sanctuary Urban Group Inc ("SanctuaryUrban") had terminated the employment of Troy Carter, Julius Erving III and TonyDavis, for cause, specifically alleging that they were in material breach oftheir employment agreements with Sanctuary Urban and also in material breach ofcertain stock purchase agreements relating to the sale of their businesses tothe Group, and had filed a Demand for Arbitration, seeking the return toSanctuary Urban of the purchase price paid for the businesses and the varioussalaries and other benefits paid to Mr Carter, Mr Erving and Mr Davis, plusinterest. However, it was also noted that the Company believed that there wasthe risk of counterclaims in these actions which may have been material inamount. During the course of further discussions, it became evident to the Company thatthe Company and Sanctuary Urban would have material difficulty in obtainingsatisfaction of any judgment, that costs associated with the proceedings werelikely to be substantial and that substantial management time would be expendedin progressing the suits. Therefore, the Company, Sanctuary Urban. and MessrsDavis, Carter and Erving have amicably settled all disputes between them.Sanctuary Urban has accepted the resignation of Messrs. Davis, Carter and Ervingeffective as of 10 November, 2005. The Company believes that not pursuing itsclaims against its former employees will have no significant adverse impact uponits financial position or prospects. ends For further information, please contact: The Sanctuary Group plcPhilip Ranger, Director, Corporate & Investor Relations 07768 534641 020 7300 1323 Brunswick +44 (0) 20 7404 5959James HoganCraig BrehenyAsh Spiegelberg This information is provided by RNS The company news service from the London Stock Exchange