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HFTP INVESTMENTS v LOG ON AMERICA Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,960, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: HFTP INVESTMENTS, State: DE Delaware, UniqueCaseRef: DE>CC>00018960, Hftp, Loa, Delaware, York, Convertible Preferred Investors, Motion, Dismiss, Common Stock, Summary Judgment, Investment, Securities, Proceeding, Purchase Agreement, Convertible Preferred Complaint, Hftp Investments, Landau, Aff, Federal Court, Preferred Shares, Del, Manipulation, Conversion, Certificate, Designations, Shares, Preferences, Federal Securities Law, Agreement, Registration Statement, Http Investors, Redemption Claim, Discovery, Promethean, Defendant Loa, Delaware Limited Liability , ContentID: 120246313

Case Documents
1 2001-08-01 LLC. V. LOG ON AMERICA INC. PLAINTIFFS OPENING BRIEF IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 127065
22 pages
PDF
2 2001-07-03 DEFENDANTS OPENING BRIEF IN SUPPORT OF MOTION TO DISMISS OR STAY
[ see first page and extracted highlights below  ] ItemID: 127066
39 pages
PDF
3 2001-06-12 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114974
7 pages
PDF
Total Documents: 3 documents , 68 pages
Price: $ 29.95


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1 . LLC. V. LOG ON AMERICA INC. PLAINTIFFS OPENING BRIEF IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT

EXTRACTED KEY WORDS
YORK
COURT
MOTION
DISMISS
DELAWARE
LOA
SUMMARY JUDGMENT
HFTP INVESTMENTS
DEFENDANT
LANDAU
AFF
PREFERRED SHARES
PLAINTIFF
DEL
PROCEEDING
SECURITIES
COMMON STOCK
REDEMPTION CLAIM
DELAWARE LIMITED LIABILITY
CERTIFICATE
CSFB ACTION
REGISTRATION RIGHTS AGREEMENT
OBLIGATIONS
PROMETHEAN
LIMITED LIABILITY COMPANY
THOMASHOWER
SUMMARY JUDGMENT STANDARD
REGISTRATION STATEMENT
DESIGNATIONS
         IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                          IN AND FOR NEW CASTLE COUNTY


HFTP INVESTMENTS, L.L.C., a
Delaware limited liability company,
                                       >
                        Plaintiff,
                                       i
                  V.                          CA. No. 18960
                                       ;                            .,'
LOG ON AMERICA, INC., a
Delaware Corporation,                  ;

                        Defendant.     :


              PLAINTIFF'S OPENING BRIEF IN SUPPORT OF ITS
        MOTION FOR SUMMARY JUDGMENT AND IN OPPOSITION
                  TO DEFENDANTS' MOTION TO STAY OR DISMISS





                                       SMITH, KATZENSTEIN & FURLOW LLP
                                       David A. Jenkins, Esquire
                                       800 Delaware Ave.
                                       P.O. Box 410
                                       Wilmington, DE 19899
                                       (302) 652-8400
                                       Attorneys for Plaintiff

OF COUNSEL:

Mark S Landau, Esquire
KAPLAN, THOMASHOWER  & LANDAU LLP
26 Broadway, 20th Floor
New York, NY 10004
(212) 593-1700

August 1,200 I



                                              TABLE OF CONTENTS



SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • HFTP INVESTMENTS, L.L.C., a Delaware limited liability company,
  • PLAINTIFF'S OPENING BRIEF IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT AND IN OPPOSITION
  • TO DEFENDANTS' MOTION TO STAY OR DISMISS
  • KAPLAN, THOMASHOWER & LANDAU LLP
  • SUMMARY JUDGMENT STANDARD.
  • HFTP IS ENTITLED TO SUMMARY JUDGMENT.
  • The Core Of HFTP's Redemption Claim
  • Prime Sec. D&rib., Inc., Del.
  • This action is brought by plaintiff HFTP Investments, L.L.C., a
  • Delaware limited liability company, to obtain a judgment requiring defendant Log On
  • G)`, and in accordance with LOA's Certificate ofDesignations (O'Brien Aff., Ex.
  • LOA has moved to dismiss or stay this action in favor of a prior-filed action
  • in the United States District Court for the Southern District of New York (D.I.
  • short sales" in violation of the agreements between the parties and federal securities laws.
  • CSFB Action, subject to an appropriate confidentiality order here, to which LOA for its own
  • our common stock has failed to maintain certain continued listing requirements" (O'Brien
  • Designations that sets forth the terms and conditions upon which HFTP was entitled to
  • provides for remedies in the event LOA breached or repudiated its obligations (O'Brien Aff.
  • The Certificate of Designations also provided for the holders of Preferred Shares to
  • HFTP also entered into a Registration Rights Agreement with LOA
  • its best efforts to cause the registration statement to be declared effective by the SEC as
  • Promethean Asset Management,
  • unusual circumstance" and "so long as the first tiled suit is proceeding reasonably promptly

  • 2 . DEFENDANTS OPENING BRIEF IN SUPPORT OF MOTION TO DISMISS OR STAY

    EXTRACTED KEY WORDS
    HFTP
    DELAWARE
    CONVERTIBLE PREFERRED INVESTORS
    YORK
    DEFENDANTS
    COURT
    COMMON STOCK
    INVESTMENT
    DISMISS
    CONVERTIBLE PREFERRED COMPLAINT
    PURCHASE AGREEMENT
    LITIGATION
    MOTION
    FEDERAL COURT
    PROCEEDING
    SECURITIES
    MANIPULATION
    FEDERAL SECURITIES LAW
    CONVERSION
    HTTP INVESTORS
    DISCOVERY
    TRANSACTIONAL DOCUMENTS
    CSFB
    MARKET PRICE
    FLOORLESS CONVERTIBLES
    CITADEL INVESTORS
    FRAUDULENT
    PLAINTIFF
    JURISDICTION
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                
    
                                     IN AND FOR NEW CASTLE COUNTY                                      
                                                                                           r,`.  _.
    
    HFTP INVESTMENTS, L.L.C.
    a Delaware limited liability company,                                                              
    
                                                                                                       
                               Plaintiff,                         C . A .   N o .   18960-NC           
                                                                                           I  )
                       V.                               >                                  -i-j        
                                                                                                       
                                                                                                   .  .
    LOG ON AMERICA, INC.,
    a Delaware corporation,
    
                               Defendants.
    
    
                             DEFENDANT'S  OPENING BRIEF IN SUPPORT OF
                 ITS MOTION TO DISMISS OR, IN THE ALTERNATIVE, TO
                                              -    -                                     STAY
    
    
    
    
    
    OF COUNSEL:                                         Robert J. Steam, Jr.
                                                        Richards, Layton & Finger
    Steven J. Shore                                     One Rodney Square
    Mark A. Berman                                      P.O. Box 551
    Ganfer & Shore, LLP                                 Wilmington, Delaware 19899
    360 Lexington Avenue                                (302) 651-7830
    New York, New York 100 17                                Attorneys for Defendant
    (2 12) 922-9250                                          Log On America, Inc.
    
    
    
    
    Dated: July  3,200l
    
    
    
    
    
    RLFl-2329888-l
    
    
    
    SNIPPETS:
  • ITS MOTION TO DISMISS OR, IN THE ALTERNATIVE, TO
  • NATURE AND STAGE OF THE3 PROCEEDING.
  • YORK:LITIGATIONS COMMENCED BY LOA
  • Campaign To Drive Down The Price Of LOA Common Stock.
  • Preferred Stock To Reap The Benefits Of Their Manipulation Scheme.
  • Justice Requires This Court To Dismiss or Stay The Delaware Action.
  • HFTP Investments, L.L.C. v. ARIAD Pharm., Inc., Del.
  • Robert C. Friese & Jahan P. Raissi, "Junk Equity Deals Can Harm Stock: While A `Floorless
  • On August 18, 3000, LOA commenced an action against Plaintiff HTTP Investments.
  • against the Convertible Preferred Investors and just days after the HITP Investors were
  • Such institutional investors, each of whom are defendants in LOA's Action against rhe
  • the Citadel Investors and Marshall shall hereinafter be referred to as the Convertible
  • investment banker, as is further described below, entitled Log On America, Inc. v. Credit
  • that the Convertible Preferred Investors procured the underlying Securities Purchase
  • Agreement (the "Purchase Agreement") by fraud; that they breached the Purchase Agreement;
  • void due to the HTTP Investors' fraudulent conduct; recission of the Purchase Agreement;
  • strategically decided to move to dismiss the Convertible Preferred Complaint in Nelv York,
  • HETP Investors are defendants) arid the recent discovery rulings rendered in LOA's Action
  • occasions by t.he Federal Court in New York if they would waive the stay of,
  • On January I?. 2001, LOA commenced its Action against CSFB alleging that CSFB,

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    LOA
    SHARES
    PREFERENCES
    AGREEMENT
    DEFENDANT LOA
    COMMON STOCK
    CERTIFICATE
    DESIGNATIONS
    SECURITIES
    PURCHASE AGREEMENT
    INVESTORS
    PURSUANT
    CONVERSION
    RIGHTS AGREEMENT
    DELAWARE
    REGISTRATION STATEMENT
    AMERICA
    YORK
    COURT
    MANAGEMENT
    BUSINESS
    WARRANTS
    REDEMPTION
    REQUESTS
    RELEVANT TIMES
    LAWS
    PROMETHEAN
    MARKET
    EXHIBIT
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                            IN AND FOR NEW CASTLE COUNTY
    
    
    HFTP INVESTMENTS, L.L.C.,                       1
    a Delaware limited liability company,
                                                    i
                                   Plaintiff,       )
                                                    >
           V.                                       ) Civil Action No.     /gg  c$- t? .-fv'C,~
    
    LOG ON AMERICA, INC.,
    a Delaware corporation,
                                                    i
                                   Defendant. )
    
    
                                           COMPLAINT
                                           C
                                             O
                                                  M
                                                    PL
                                                         AI
                                                          NT
    
                   Plaintiff, HFTP Investments, L.L.C., alleges as follows:
    
                                             P a
                                             Ther t i e s
    
                   1. HFTP Investments, L.L.C.  ("HFTP") is, and at all relevant times was,
    
    a limited  liabi1il.y company duly organized and existing under the laws of the State of
    
    Delaware with its principal place ofbusiness in New York, New York. At all relevant times,
    
    Promethean  As:jet Management L.L.C. ("`Promethean") acted as  HFTP's investment
    
    manager. Promethean is a limited liability  company duly organized and existing under the
    
    laws of the State of Delaware with its principal place of business in New York.
    
                   2. Defendant,  L,og  On America, Inc.  ("LOA"), is, and at all relevant
    
    times was, a corporation duly organized and existing under the laws  ofthe State  ofDelaware
    
    with its principal place of business in Provi  dence,  Rhode Island. Defendant  LOA is engaged
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • HFTP Investments, L.L.C. is, and at all relevant times was,
  • Delaware with its principal place ofbusiness in New York,
  • Promethean is a limited liability company duly organized and existing under the
  • laws of the State of Delaware with its principal place of business in New York.
  • Defendant, L,og On America, Inc., is, and at all relevant
  • Defendant LOA is engaged
  • trades in the over-the-counter market on {ihe NASDAQ National Market.
  • Securities Purchase Agreement with HFTP and other investors.
  • of the Securities Purchase Agreement is annexed as Exhibit A.
  • Series A `Convertible Preferred Stack and warrants to purchase
  • 594,204 s'hares of LOA's common stock to HFTP and the other investors.
  • Pursuant to the Agreement, HFTP paid LOA $3,750,0013 and LOA
  • issued to IHFTP 3,750 shares of the Preferred Stock.
  • Common Stock on the terms and Iconditions set forth in the Certificate of Designations,
  • Preferences and Rights of Series A Convertible Preferred Stock ofLog On America,
  • was granted the right to compel redemption of all of its 3,750 Preferred Shares upon LOA's
  • of its intentions not to comply with a request for conversion of any Preferred
  • HFTP with the benefit of its bargain, HFTP entered into a Registration Rights Agreement
  • use its "best efforts" to cause such registration statement to be declared effective by the
  • Management I, L.C. and the other purchasers of Preferred Stock under the Securities
  • Purchase Agreement in the United State,< District Court for the Southern District of New
  • in a press release that it would not honor conversion requests for Preferred Shares and would
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