DALLAS - Titan Global Holdings Inc., a high growth diversified holding company, announced in a press release that Oblio Telecom, a unit of its Communications Division, commenced fraud litigation against a number of parties, including a former employee of Oblio.
Oblio filed a lawsuit in the Federal District Court for the Northern District of Texas against a former employee of Oblio and several distributors of its most popular prepaid telephone calling cards. The lawsuit alleges that the defendant employee and distributors conspired with each other in violation of the Racketeer Influenced and Corrupt Organizations (R.I.C.O.) Act.
Oblio claims that the defendant employee and distributors committed mail and wire fraud and participated in illegal schemes and racketeering activities designed to defraud Oblio out of millions of dollars of prepaid telephone cards.
Simultaneous with the filing of the company's R.I.C.O. Act lawsuit, Oblio Telecom Inc. filed a separate lawsuit in the Federal District Court for the Northern District of Texas against several prepaid calling card retailers, distributors and their network provider.
The lawsuit seeks injunctive, monetary, and other appropriate relief for trademark infringement, false designation of origin, and unfair competition under the Lanham Act and related causes of action under the common law of Texas.
The alleged causes of action arise from the Defendants' promotion, advertisement and sale of counterfeit calling cards bearing reproductions, copies and colorable imitations of Oblio's famous Hello Asia trademark and trade dress. Oblio claims that the retailers, distributors and network provider worked in concert to violate Oblio's statutory and common law rights causing Oblio millions of dollars in damages.
Since November, 2007, Titan's market cap has declined from over $110 Million to approximately $25 Million, a decline of over $85 Million. Beginning in December 2007, a series of disparaging postings about Oblio Telecom and its prepaid phone cards were made on various stock based chat rooms. These postings led to adverse advisory reports by firms that have followed Titan. Titan believes these postings contributed to a rapid decline in Titan's public share price. Titan believes these postings were part of a coordinated and concerted plan to undermine Titan's ability to defend itself against the fraud losses its Oblio unit suffered. The Defendants' actions substantially damaged Titan and its shareholders. The referenced actions seek treble damages in addition to actual damages.
Oblio intends to make appropriate criminal referrals for investigation of these matters and the possible issuance of criminal charges.
