Veltex Corporation Recovers Common Shares and Cash in California Federal Litigation

Rhea-AI Summary

Veltex Corporation (OTCQB: VLXC) announced the recovery of 900,000 common shares valued at $450,000 and $1,681.62 in cash from Federal litigation in California. This recovery, linked to a previous fraudulent conveyance case against former management, follows a final judgment of over $100 million in favor of Veltex. The company intends to enforce all legal matters and keep shareholders informed about tax and legal developments. Veltex, incorporated in 1987, operates through its subsidiaries Veltex Properties, Inc. and Veltex Medical, Inc.

Positive

• Recovery of 900,000 common shares valued at $450,000, enhancing shareholder value.
• Additional cash recovery of $1,681.62.
• Final judgment of $100,078,621 awarded in previous litigation, indicating strong legal position.

Negative

• Litigation related to fraudulent conveyance suggests past mismanagement issues.
• The ongoing nature of litigation may indicate continuing legal expenses and uncertainties.

CHICAGO, Sept. 12, 2022 /PRNewswire/ -- Veltex Corporation (OTCQB: VLXC) ("Veltex"), a Health and Wellness Acquisition Holding Firm, announces recovery of Nine Hundred Thousand (900,000) free trading common shares of Veltex Corporation in the Federal litigation in California. The recovery, currently valued at Four Hundred Fifty Thousand Dollars ($450,000), and One Thousand Six Hundred Eighty-One Dollars and Sixty-Two Cents ($1,681.62) in cash, has been recovered from a single defendant in that matter. Those common shares will be deposited in the Company's treasury account at American Stock Transfer and Trust ("AST") in New York. Veltex intends to enforce all matters in the Federal litigation to the full extent of the law.

Veltex Corporation Recovers $450,000 in Common Shares via Federal Litigation

Veltex legal settlement receivables relate to various lawsuits. Most specifically, on March 26, 2012, in the United States District Court for the Central District of California, a final judgment was entered in Veltex favor in the amount of $100,078,621 Case No. CV 10 1746 ABC (PJWs). This federal litigation was initiated against the former management of Veltex, other individuals and corporate defendants. This litigation arose from a scheme to fraudulently convey the shares of Veltex to another entity for little or no consideration to Veltex. The proceeds from the sale of the shares were converted by the defendants for their own personal use. The United States District Court classified the judgment as fraudulent conveyance and transfer of assets, or corporate theft.

The above referenced litigation, detailed in the final judgment order against the defendants, specifically outlined California State Sections 4(a) and 5(b) of the Uniform Fraudulent Transfer Act, California Civil Code § 3439.04(a) and (b).

Micah T. Reeves, General Counsel for Veltex, noted the above referenced litigation has been recently renewed in the United States District Court for the Central District of California, which can be continually renewed until all collection efforts have been exhausted.  Moreover, Mr. Reeves indicated his legal department continues to aggressively enforce all judgments in favor of Veltex in all jurisdictions.

Veltex will update shareholders with tax, legal, and accounting developments as progress warrants. Veltex also intends to update shareholders on the immediate future of the company as developments warrant. We look forward to creating partnerships and alliances highlighting our comparative and competitive advantages in the holding industry and in general.

Veltex Corporation ("Veltex"), incorporated in Utah September 17, 1987, is a public holding corporation, which maintains its corporate headquarters in Chicago, Illinois. The company's common shares trade OTCQB Markets under the symbol VLXC. Veltex operates two major wholly owned subsidiaries, Veltex Properties, Inc. and Veltex Medical, Inc., both Delaware corporations.

Safe Harbor Statement Forward Looking Statement

Safe Harbor Statement Certain of the above statements contained in this press release are forward-looking statements that involve several risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Veltex or its management "believes," "expects," "anticipates," "foresees," "seeks," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe Veltex's business strategy, outlook, objectives, plans, intentions, or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition, and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company, Veltex, as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation. 

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SOURCE Veltex Corporation

FAQ

What is the recent recovery by Veltex Corporation related to?

Veltex Corporation has recovered 900,000 common shares valued at $450,000 and $1,681.62 in cash from Federal litigation in California.

How much was Veltex awarded in the recent litigation?

Veltex was awarded a final judgment of $100,078,621 in a previous litigation case.

What is the significance of the recovered shares for VLXC investors?

The recovery of shares potentially enhances shareholder value and indicates positive developments in Veltex's legal standing.

What kind of legal issues is Veltex Corporation facing?

Veltex is involved in litigation related to fraudulent conveyance, which arose from past mismanagement by former executives.