Drinks Americas Settles Litigation
April 29 2011 - 9:12AM
Drinks Americas Holdings, Ltd. (OTCBB:DKAM) today announced that it
has settled its outstanding litigation. The Company is pleased to
announce that the case of Richard Shiekman v. Drinks Americas,
Inc., Drinks Americas Holdings, Ltd. and J.
Patrick Kenny, Connecticut Superior Court for the Judicial
District of Fairfield at Bridgeport, Docket Number CV 09
4028895 S has been settled to the mutual satisfaction of the
parties. The case has been withdrawn.
Drinks Americas also recently announced that it had prevailed in
a binding arbitration between Liquor Group and was awarded
$664,659.05.
In the award, the arbitrator denied Liquor Group's claims,
finding that Drinks Americas did not breach its contract with
Liquor Group or any of its entities and that Drinks Americas did
not tortuously interfere with Liquor Group's
business. Accordingly, the arbitrator did not award any
damages to Liquor Group.
The arbitrator found that Liquor Group's liquidation and failure
to pay for Drinks Americas products sold by Liquor Group
constituted a breach of contract by Liquor Group. The arbitrator
further found that Drinks Americas was damaged by Liquor Group's
breach in the amount of $180,058.62 and that, pursuant to the
contract between the companies, such damages were to be tripled so
that, damages and monies owed to Drinks Americas by Liquor Group
became $540,175.86.
The arbitrator also found that pursuant to the contract between
Drinks Americas and Liquor Group, Liquor Group was to pay any and
all costs and expenses incurred by Drinks Americas in enforcing or
establishing its rights under the agreement including reasonable
attorney's fees. The arbitrator awarded Drinks Americas $120,605.15
in reasonable attorney's fees along with additional costs of
$3,878.04 for a total of $124,403.19.
In summary, the arbitrator found that the total owed by Liquor
Group or Liquor Group Holding for damages, fees and costs to be
paid to Drinks Americas, is $664,659.05.
The Company also resolved litigation in the matter of Niche
Magazine, which has also been settled to the mutual satisfaction of
both parties.
About Drinks Americas
Drinks Americas develops, owns, markets, and nationally
distributes alcoholic premium beverages including Willie Nelson's
Old Whiskey River Bourbon, Olifant Vodka and Rheingold Beer.
For further information, please visit our new websites at
www.drinksamericas.com and www.rheingoldbrewingcompany.com.
The Drinks Americas Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7881
Safe Harbor
Except for the historical information contained herein, the
matters set forth in this release, including the description of the
company and its product offerings, are forward-looking statements
within the meaning of the "safe harbor" provision of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including the historical
volatility and low trading volume of our stock, the risk and
uncertainties inherent in the early stages of growth companies, the
company's need to raise substantial additional capital to proceed
with its business, risks associated with competitors, and other
risks detailed from time to time in the company's most recent
filings with the Securities and Exchange Commission. These
forward-looking statements speak only as of the date hereof. The
company disclaims any intent or obligation to update these
forward-looking statements.
CONTACT: Charles Davidson
Drinks Americas, Inc.
203-762-7000
cdavidson@drinksamericas.com
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