Big Blue Products and Its Owners File Lawsuit Against European Micro Holdings, Inc., Announces Kronish Lieb Weiner & Hellman LLP

Big Blue Products and Its Owners File Lawsuit Against European Micro Holdings, Inc., Announces Kronish Lieb Weiner & Hellman LLP

NEW YORK–(BUSINESS WIRE)–Nov. 12, 1999–

The following was announced today by Kronish Lieb Weiner & Hellman LLP:

Big Blue Products filed a lawsuit today seeking $10 million plus in damages from European Micro Holdings, Inc. (NASDAQ: EMCC) in the United States District Court for the Eastern District of New York.

The complaint was filed by Jeff Alnwick, Marie Alnwick and Big Blue Products of Huntington, Long Island. The Alnwicks and Big Blue Products are represented by Jay Spievack and Amy Held of Kronish Lieb Weiner & Hellman LLP, a New York City law firm.

The 167 page verified complaint alleges that EMCC and one of its subsidiaries engaged in an illegal scheme to defraud their joint venture partners in connection with an EMCC affiliate’s joint venture company — Big Blue Europe B.V. The verified complaint alleges that EMCC’s wholly owned subsidiary, European Micro Plc, is a fifty percent shareholder of Big Blue Europe and that its principal shareholders, John Gallagher and Harry Shields, are two of the joint venture’s four-person Board of Directors.

The verified complaint asserts claims against defendant EMCC for fraud, aiding and abetting fraud, misappropriation of trade secrets, aiding and abetting breach of fiduciary duty and tortious interference with contract.

The verified complaint also asserts claims against defendant European Micro Plc for fraud, misappropriation of trade secrets, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, and tortious interference with contract.

Finally, the verified complaint asserts claims against defendants John Gallagher and Harry Shields, for fraud, misappropriation of trade secrets, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, and tortious interference with contract.

The verified complaint alleges that the Alnwicks are fifty percent or greater shareholders of Big Blue Europe and the remaining two directors of the joint venture’s four-person Board of Directors. Therefore, the Alnwicks also asserted certain claims on behalf of Big Blue Europe against defendants EMCC, European Micro Plc and Gallagher and Shields.

If you have any questions regarding the lawsuit, please contact Jay Spievack at (212) 479-6000.

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