CLST Holdings is Announcing a Law Suit Against Red Oak Fund, L.P., Red Oak Partners, LLC, and David Sandberg Alleging Violations
February 17 2009 - 9:15AM
PR Newswire (US)
DALLAS, Feb. 17 /PRNewswire-FirstCall/ -- CLST Holdings, Inc.
("CLST") (Pink Sheets: CLHI) announced today that it had filed a
lawsuit in the United States District Court for the Northern
District of Texas against Red Oak Fund, L.P., Red Oak Partners,
LLC, and David Sandberg alleging that defendants engaged in
numerous violations of federal securities laws in making recent
purchases of the common stock of CLST. Among other things, CLST
accuses the defendants of falsely stating their intention to
abandon a previously announced tender offer for CLST's common
stock, when in fact, CLST alleges, defendants were making an
illegal tender offer without complying with applicable securities
laws. In addition, CLST accused defendants of having failed to make
timely disclosure of their stock purchases in light of their
undisclosed tender offer. The complaint seeks to enjoin any future
unlawful purchases of CLST stock by the defendants, their agents,
and persons or entities acting in concert with them. "We are
committed to protecting our stockholders' rights and interests and
ensuring that those trading in our securities remain in compliance
with all applicable laws," said Robert Kaiser, CLST's Chairman and
CEO. "We intend to diligently pursue this claim and any like it
that may arise in the future." The statements in this news release
that do not directly relate to historical facts constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
subject to numerous risks and uncertainties, many of which are
outside the Company's control. As such, no assurance can be given
that the actual events and results will not be materially different
than the anticipated results described in the forward-looking
statements. Factors could cause actual results to differ materially
from such forward-looking statements. For a description of these
factors, see the Company's prior filings with the Securities and
Exchange Commission. DATASOURCE: CLST Holdings, Inc. CONTACT:
Robert Kaiser, President, Chief Executive Officer of CLST Holdings,
Inc., +1-972-267-0500 Web Site: http://www.clstholdings.com/
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