Reliability Incorporated (RLBY) Updates Investors on the Ongoing Litigation against the Vivos Group.

Rhea-AI Summary

Reliability Incorporated (RLBY) successfully obtained three arbitration awards as judgments against Vivos Holdings, LLC, totaling over $7.7M. The appointed rehabilitative receiver is working on a plan to collect the awards. The Vivos Debtor balance was $5.5M, with additional legal fees and stock awards contributing to the total owed. CEO Nick Tsahalis expressed satisfaction with the outcome and emphasized the company's focus on growth post-resolution of the legal proceedings.

CLARKSBURG., Maryland, March 07, 2024 (GLOBE NEWSWIRE) -- Reliability Incorporated OTC PINK (RLBY)

On December 29, 2023, the Circuit Court for Montgomery County, Maryland signed orders entering three (3) arbitration awards as judgments in Reliability’s case against the Vivos Holdings, LLC and others (collectively, the “Vivos Group”). The Arbitrator had entered awards in August 2022, May 2023, June 2023, and October 2023, based upon contract and tort claims brought by Reliability and Reliability’s wholly owned subsidiary, The Maslow Media Group (“MMG”), against the Vivos Group. The total amount of the judgments exceeds $7.7M. The arbitrator also appointed a rehabilitative receiver to collect Reliability’s portion of the judgments.

These three arbitration Awards became final judgements on January 29, 2024. The judgments are good for 12 years and can be enrolled in other states. Thus, Reliability and MMG now, have final judgments which the appointed Receiver is now eligible to collect.

The Rehabilitative Receiver appointed by the Arbitrator is currently working on a plan to enable Reliability to collect the Awards.

As of December 31, 2023, the Vivos Debtor balance was approximately $5.5M, the legal fees awarded totaled another approximate $1.2M, and a specific fraud award provision in the merger agreement resulted in another $1M in stock awarded, resulting in the balance owed Reliability totaling approximately $7.7M.

The Receiver is empowered to recover the award by seizing shares of the company held by Dr. Naveen Doki and his affiliates, the Vivos Group.

During the receivership, Vivos Group shareholders shall not be entitled to vote any of their shares in Reliability at any annual or special meetings of the shareholders. The receivership shall terminate once the judgments in favor of Reliability are satisfied and, at that time, the restrictions on the rights of the Vivos Group shareholders imposed by the Award, shall be lifted.

“These legal proceedings have been a material distraction to the company over the last 4 years”, said CEO Nick Tsahalis. “While this process took a significant amount of time, we are extremely pleased with the outcome, and we are eager to work with the Receiver to quickly enforce and collect the awarded judgements. Our sole focus moving forward is to grow our company both organically and through synergistic M&A activity.”

As soon as Reliability is in a position to state definitively what actions are in the process of being taken and/or has an expected timeline for recovery of all or part of the awards, the company will release additional information.

Contact information:
Investor Relations – InvestorRelations@rlby.com
12124 Skylark Road, Clarksburg, MD 20871,
www.rlby.com
202-965-1100.

FAQ

What legal actions did Reliability Incorporated (RLBY) take against Vivos Holdings, LLC?

Reliability Incorporated (RLBY) pursued contract and tort claims against Vivos Holdings, LLC and others, resulting in three arbitration awards as judgments totaling over $7.7M.

What was the total amount of the judgments obtained by Reliability Incorporated (RLBY) against the Vivos Group?

The total amount of the judgments obtained by Reliability Incorporated (RLBY) against the Vivos Group exceeded $7.7M.

Who was appointed by the Arbitrator to collect Reliability's portion of the judgments?

A rehabilitative receiver was appointed by the Arbitrator to collect Reliability's portion of the judgments.

What was the Vivos Debtor balance as of December 31, 2023?

The Vivos Debtor balance was approximately $5.5M as of December 31, 2023.

What did CEO Nick Tsahalis state about the legal proceedings against Vivos Holdings, LLC?

CEO Nick Tsahalis mentioned that the legal proceedings against Vivos Holdings, LLC were a material distraction to the company over the last 4 years.