From October 2000 until September 2004 the directors and other
persons associated with Media World Communications Ltd made various
claims about a technology called "Adams Platform technology".
These included claims that it was new technology invented by one
of the directors, Adam Clark, and that it would compress
digitally-stored data to such an extent that DVD-quality video and
sound would be able to be transmitted in real time over standard
copper telephone lines.
These and other statements about the technology were made to
potential investors as part of a capital raising process. Large
sums were raised, but the technology failed to work and in
September 2004 the company went into administration. Most investors
lost their entire investments. Subsequent investigations by the
company administrator raised serious doubts as to whether the
technology was new, or was ever able to achieve the levels of
performance that had been claimed for it.
The action
Maurice Blackburn has commenced proceedings in the Supreme Court
of Victoria on behalf of all persons who acquired interest in
shares in Media World between 26 October 2000 and 1 September 2004
and who suffered loss as a result of the pleaded conduct of the
defendants.
The defendants to the class action are Adam
Clark, his father, various companies associated with Adam Clark,
some directors of Media World, the investment house Terrain
Capital, and an international testing group that reported on the
technology, The Tolly Group Inc and its CEO, Kevin Tolly.
The allegations made by the plaintiff are set out in
the Fourth Amended Statement of Claim. It
alleges that various representations made in relation to the
technology were misleading or deceptive, or had not been prepared
with sufficient care, in breach of the Corporations Act, the ASIC
Act, the Trade Practices Act and other legal duties. The plaintiff
claims damages and other relief, for itself and for each of the
group members.
Click here to read the Fourth Amended Statement of
Claim.
Each of the defendants denies the allegations and is defending
the class action.
If you are a group member you are not obliged to register with
us, but doing so will help us to keep in contact with you in
relation to the class action.
Click here for the Group Member Registration Form.