NewLead Settles with Ironridge Global

Bermuda-registered shipowner NewLead Holdings Ltd. said it had reached a full and final settlement with equity investor Ironridge Global IV on December 11, 2014 of all disputes between the parties.

Pursuant to the settlement, the arbitration proceedings between the parties have been terminated.

In addition, the Share Subscription Agreement entered into on March 4, 2014 and the other related transaction documents, including the Series A Preference Shares, Promissory Notes and Irrevocable Letter of Instruction, have all been terminated and canceled, the company pointed out.

NewLead filed claims against Ironridge on June 3, 2014 for breach of contract, fraudulent inducement of contract and fraud, securities market manipulation and misrepresentation in violation of United States federal securities laws, unjust enrichment, and violation of 15 U.S.C. 78p(b).

This included seeking disgorgement of short-swing profits, damages in excess of USD 25 million, punitive damages in excess of USD 100 million, and reimbursement of legal costs and the costs of the arbitration.

NewLead has also requested that the arbitration tribunal declare that the agreement between NewLead and Ironridge is terminated and/or void ab initio, and that Ironridge has no entitlement to the issuance of additional common shares of NewLead.

According to NewLead, Ironridge was selling substantial numbers of common shares of the company on a daily basis, to the detriment of the NewLead and all of its stockholders.

After Ironridge was given an opportunity to respond at a hearing on June 9 to the Temporary Restraining Order (TRO) and Petition for Preliminary Injunctive Relief Pending Arbitration brought by NewLead, the U.S. District Court ruled  in favor of Ironridge, dissolved the TRO, and denied NewLead’s request for a preliminary injunction.

“At a fully evidentially hearing on June 9, 2014, Ironridge proved that NewLead’s allegations that Ironridge breached its contractual obligations – which were based entirely on rank speculation without a shred of evidence – were all demonstrably false.  Ironridge submitted indisputable trading records conclusively proving that Ironridge has never engaged in short selling, market manipulation or selling above agreed volume limits,” the equity investor said on the occasion.