Wednesday, 7 November 2007

AeroMechanical Sues Star Navigation For $15 million

AeroMechanical Services (AMA - TSX V)

AeroMechanical has lobbed a hefty lawsuit back in the Star Navigation camp. This is complicated but the action was launched in response to Star naming AeroMechanical as a defendant in Star's counterclaim against a lawsuit filed against Star by one of Star's former executives.
In other words, AMA is simply responding to a pitched legal battle that was going on between Star and its former CEO.
AeroMechanical stated in a Nov. 07th press release that it is suing Star for $15 million, claiming damages for Star allegedly interferring with AMA's contracts, for disrupting AMA's business and attacking the company's reputation.

AMA also went two steps further by naming Star principal Viraf Kapadia as a defendant and putting Star on notice that AMA will be immediately applying to the Ontario Superior Court for a substantial security of costs for Star's "frivolous and vexacious," court actions.

In addtion, AMA stated that Star's allegations that AeroMechanical infringed on Star's patent is "baseless litigation," and it challenged Star to stop its legal mudslinging and compete with AeroMechanical in the marketplace - the only place that really matters.

Please click here to see the full news release.