TSX Venture Exchange Symbol: SNA
TORONTO, May 17 /CNW/ - Mr. Viraf Kapadia, Co-C.E.O. of Star Navigation Systems Group Ltd. ("Star"), developer of Flight Safety and Fleet Monitoring Systems, announces pending litigation.
As previously announced, the employment of Hilary Vieira, the former President and Technical Director of Star, was terminated for cause on January 4, 2007.
As expected, Mr. Vieira commenced a civil action in the Ontario Superior Court of Justice for breach of contract and other relief related to the termination of his employment from Star, and for a determination that Star's exclusive license for the technology, "System & Method for Transportation Vehicle Monitoring, Feedback & Control", jointly granted by Mr. Kapadia and Mr. Vieira, the holders of the patent, is not in force. Documents were served on Star this week.
The Board of Directors of Star considers this lawsuit to be entirely without merit and will vigorously defend the action. Star has not breached, and is not in breach of the license agreement and that agreement does not permit unilateral termination by Mr. Vieira in any case. It is the position of Star and its legal counsel that the agreement is in full force and effect. In addition, Star intends to launch a Counterclaim in relation to Mr. Vieira's conduct both during his tenure and after he was relieved of his duties, which the Company considers to be contrary to the terms of his employment agreement and his fiduciary obligations. The firm of Fogler, Rubinoff LLP, has been retained to take carriage of the matter.
Peter Verbeek, Stars' Director of Legal Affairs stated, "I have reviewed the allegations contained in the Statement of Claim and, am of the opinion that Mr. Vieira will not be successful in his efforts. Fogler, Rubinoff LLP has been instructed not only to defend the action but to counterclaim against Mr. Vieira for damages incurred by Star as a result of actions taken by Mr. Vieira as both an officer and as a director of the Company. It was a condition of Star's initial listing that the License be exclusive for all applications. It contains no minimum performance requirements on Star's behalf. This matter will have no effect on Stars' day to day operations as we do not consider it to be credible."
About Star Navigation
Star Navigation Systems Group Ltd. (www.star-navigation.com) owns the worldwide license to its proprietary, patented In-flight Safety Monitoring System - ISMS(TM), the first system in the world to feature in-flight data-analysis, monitoring and diagnostics with a real-time connection between aircraft and ground. Its real-time capability of tracking performance-trends and predicting incident-occurrence enhances aviation safety and improves fleet management while reducing costs for the operator.
Certain statements contained in this News Release constitute
forward-looking statements. When used in this document, the words "may",
"would", "could", "will" and similar expressions, as they relate to Star
or its management are intended to identify forward-looking statements.
Such statements reflect Star's current views with respect to future
events and are subject to certain risks, uncertainties and assumptions.
Many factors could cause Star's actual performance or achievements to
vary from those described herein. Should one or more of these factors or
uncertainties materialize, or should assumptions underlying
forward-looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned, anticipated,
believed, estimated or expected. Star does not assume any obligation to
update these forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
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