DALLAS (CN) - The majority shareholder and judgment creditor sued Rx.com, of Austin, claiming it failed to disclose the settlement of a legal malpractice claim against a Dallas law firm.
England-based EMoss Ltd. sued Rx.com in Travis County Court.
It claims the defendant never satisfied a $45 million judgment against it because, to EMoss' understanding, it had no assets when it ceased operations.
EMoss claims it has not participated in management or operations of Rx.com in 10 years, and that (nonparty) Joe Rosson - a previous officer and shareholder - has been in charge.
"It has come to EMoss' attention that Rx.com has been involved in a malpractice lawsuit against its former lawyers, styled Rx.com, et al. v. O'Quinn Law Firm, et al., Cause No. 2010-6683, in the District Court of Harris County, 80th Judicial District," the complaint states. "On information and belief based in part on press reports, Rx.com has already received a large payment in settlement of its claims against one set of defendants in the malpractice suit. Rx.com did not notify EMoss of this payment, either as a creditor or a shareholder."
The complaint does not identify the settling law firm, but "American Lawyer" magazine identified the firm as Haynes Boone, in a Sept 27 story.
"Rx.com sued Haynes and Boone and partner Patrick Hughes over what the company claimed was the firm's failure to file antitrust suits on its behalf in 2003 and 2004 before certain statutes of limitations expired," The AmLaw Daily reported . "In a statement given to Texas Lawyer, Haynes and Boone general counsel and partner Stacy Brainin said they are pleased that the two sides decided it was 'in their respective best interests' to settle the dispute."
In its complaint, EMoss claims that it expects to receive "another large settlement payment from the remaining defendants" soon. It claims Rx.com has not indicated that it intends to use the settlement money, its only known asset, for EMoss's judgment or pay it distributions as majority shareholder.
EMoss seeks turnover, injunctive and declaratory relief preventing Rx.com from transferring any of the money to a third party, and appointment of a receiver to determine the proper disposition of company assets. It is represented by Daniel Byrne with Fritz Byrne of Austin
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