MotorSports Emporium Explains Lawsuit Against Michael G. Wachholz Preliminary Injunction Hearing
SCOTTSDALE, Ariz.--April 2, 2006--MotorSports Emporium, Inc. (OTCBB:MSEP) explains the outcome of the preliminary injunction hearing.David Keaveney, President and CEO of MotorSports Emporium comments, "There has apparently been a lot of speculation from the investment community regarding the lawsuit MSEP has against Mr. Wachholz. The preliminary injunction hearing held on March 10, 2006 and March 30, 2006 was not about payment of commissions nor was the hearing about restrictions on selling our GS610(TM) brake fluid product. The hearing was about the following two items":
1. Whether Wachholz should be prevented from posting statements about MSEP on message boards; and 2. Whether Wachholz is required to surrender passwords and control over the GS610.com and Prospeed.com web sites to MSEP.
"Due to the broad scope of the first preliminary injunction request and First Amendment rights, the court declined to prevent Wachholz from posting statements about MSEP on message boards. However, under oath, Wachholz did state he does not intend to post on the message boards about MSEP any further," stated Keaveney.
Keaveney continued, "As for the second item, the court ruled in favor of MSEP. Specifically, subject to MSEP posting a bond in the amount of $25,000 (either in cash or by paying a premium through a surety), the Court ordered Wachholz to turn over to MSEP all passwords, login and other technical information to allow MSEP to use and control the GS610.com and Prospeed.com web sites. Although Wachholz is entitled to retain the passwords and MSEP cannot change the passwords without notice to Wachholz, only MSEP is permitted to make changes to the web sites."
The hearing ended with the judge asking if MSEP and Wachholz intend to exercise the arbitration right as indicated within the licensing agreement. A decision will be made by the parties on or before April 30, 2006. Arbitration is cost effective and tends to be much quicker than a trial. The foregoing rulings by the Court are preliminary (i.e. interim) only, and are subject to change upon a trial on the merits or an arbitration hearing.
"Overall we are pleased with the court's decision. We will keep our investors conscious of the final trial or an arbitration hearing as we progress. In the mean time, MSEP will continue to grow its operations and evolve throughout 2006," concluded Keaveney.
About MotorSports Emporium, Inc.
MotorSports Emporium Inc. is a fast-track company in the motor sports industry targeting enthusiasts who participate in die cast collectible cars, automobile restoration, high-performance accessories, motor sports-related collectibles, automotive and racing art, driver's apparel, race venues and product licensing. For more information visit www.motorsportsemporium.com. For product visit www.scalecars.com, www.driversdigs.com, www.pitstopstudios.com and www.quadrigamotorsports.com.
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
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