Cheyenne Mounain Entertainment Joins Litigation Against Former Chairman Gary Whiting
CHEYENNE MOUNTAIN ENTERTAINMENT JOINS LITIGATION
AGAINST FORMER CHAIRMAN, GARY WHITING
MESA, Ariz. February 16, 2010 Gary Whiting, the Companys former, Chairman and former CEO of its subsidiary Cheyenne Mountain Games, Inc. has been named in a complaint filed in Maricopa County, Arizona Superior Court by shareholders, derivatively on behalf of Cheyenne Mountain Games, Inc. and Cheyenne Mountain Entertainment, Inc., alleging various wrong doing against the Company.
The Company also became aware a few months ago that Mr. Whiting, was named in a complaint filed in Utah County, Utah, (Case No. Civil 0904022438), and that he has caused the Company to be named in that same lawsuit, and he has allegedly obligated the Company for monies paid to Garvick Properties, LLC, a limited liability company controlled by Mr. Whiting (Garvick).
Mr. Whiting and Garvick purchased various securities from the Company and its subsidiaries and has failed to honor the terms of these purchases and has failed to pay the payments when due; therefore, the Company and its subsidiaries have foreclosed on the collateral securing Mr. Whitings and Garvicks obligations including all shares and units owned by Garvick and Garrick Enterprises, LLC.
The shareholders and board of the Company have removed Mr. Whiting as a board member and as an officer and terminated his employment with the Company and any of its subsidiaries. The Company has joined the litigation against Mr. Whiting for alleged wrongdoing. More information about the litigation can be found at http://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseInfo.asp?caseNumber=CV2010-003106.
It is uncertain at this time what the affect of Mr. Whitings actions and the pending litigation will have on the Companys operations and financial condition.
About Cheyenne Mountain EntertainmentTM
Cheyenne Mountain EntertainmentTM is an interactive entertainment company located in Mesa, Arizona. Cheyenne Mountain Entertainment's first product is a 3rd person shooter based on the popular science fiction television series, StargateTM SG-1 and StargateTM Atlantis. For more info on the company, visit the company's website at www.cheyenneme.com. For more info on Stargate Resistance, visit the new community site at www.stargateresistance.com
FireSky is a publisher and part of the Cheyenne Mountain Entertainment group of companies. FireSkys current published product is Stargate Resistance, based on the longest-running U.S. science fiction television series Stargate SG-1® and Stargate Atlantis which are officially licensed by MGM Interactive. For more information, visit the company's website www.firesky.com and the Stargate Resistance community site at www.stargateresistance.com.
Cheyenne Mountain Entertainment, FireSky, the Cheyenne Mountain logo and the FireSky logo are trademarks or registered trademarks of Cheyenne Mountain Entertainment, Inc. in the U.S. and/or other countries. Stargate SG-1TM and © 19972006 Metro-Goldwyn-Mayer Studios, Inc. All rights reserved. All other trademarks or tradenames are the property of their respective owners. Statements herein concerning future events and developments and the Company's expectations, beliefs, plans and estimates constitute forward-looking information that involves risks and uncertainties. Cheyenne's actual results could differ materially from those indicated by the forward-looking information.