Business
Zefiro Founder Announces Partial Dismissal of New York Litigation and Comments on Annual Meeting Results
TORONTO, March 27, 2026 (GLOBE NEWSWIRE) -- Dr. Talal A. Debs, Founder of Zefiro Methane Corp. (Cboe: ZEFI) ("Zefiro" or the “Company”), is pleased to announce that his motion to dismiss of a New York civil case (the “NY Litigation”) brought by David McGrath against Dr. Debs, X Machina Capital Strategies Fund I GP LLC (“XMC”), and X Machina Capital Strategies LP (“XMST”) was granted in part. In a decision delivered March 19, 2026, a New York court dismissed multiple allegations included in the N
About this update from Zefiro Methane Corp.
[{"type":"text","content":"TORONTO, March 27, 2026 (GLOBE NEWSWIRE) -- Dr. Talal A. Debs, Founder of Zefiro Methane Corp. (Cboe: ZEFI) ("Zefiro" or the “Company”), is pleased to announce that his motion to dismiss of a New York civil case (the “NY Litigation”) brought by David McGrath against Dr. Debs, X Machina Capital Strategies Fund I GP LLC (“XMC”), and X Machina Capital Strategies LP (“XMST”) was granted in part. In a decision delivered March 19, 2026, a New York court dismissed multiple allegations included in the NY Litigation. Dr. Debs is confident he and XMC will prevail with respect to the remaining counts.","length":607,"tagName":"p"},{"type":"text","content":"The NY Litigation was used by Zefiro’s board of directors (the “Board”) as a pretext for a frivolous investigation into Dr. Debs which was launched at considerable expense to shareholders. The Board then repeatedly cited the existence of the investigation to discredit Dr. Debs in his bid to elect a slate of directors at the Company’s annual general and special meeting of shareholders which was held on March 20, 2026 (the “Meeting”).","length":436,"tagName":"p"},{"type":"text","content":"Mr. McGrath worked with the Board to entrench the incumbent directors. He also sought unsuccessfully to block XMC’s ability to function and to prevent XMC from voting its Zefiro shares at the Meeting; these attempts were dismissed by a court and securities regulator, respectively.","length":281,"tagName":"p"},{"type":"text","content":"In separate litigation, Zefiro CEO Catherine Flax has filed a suit against XMC in which she makes additional false claims. Regrettably, the cynical nature of the McGrath and Flax actions has necessitated XMC filing suit against them in Florida for various matters, including tortious interference, civil conspiracy and defamation.","length":330,"tagName":"p"},{"type":"text","content":"Commentary on the future of Zefiro Methane","length":42,"tagName":"p"},{"type":"text","content":"As announced by the Company, Dr. Debs was unsuccessful in his efforts to elect directors to the Board at the Meeting. Dr. Debs respects the decision Zefiro shareholders made based on the information available to them. Through XMC and XMST, he remains a significant shareholder, and plans to hold the Board and management team to account on decisions affecting the Company.","length":372,"tagName...