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A New York Supreme Court judge ruled to uphold a temporary injunction against Black Enterprise and Textron Financial Corp. in the on going battle for The Source magazine on Friday (Mar. 3).
Judge Richard B. Lowe III upheld a temporary injunction granted last month, preventing Mays and Scott's shares of the company from being sold.
Textron Financial, The Source's bank, was attempting to auction the 82% majority share that the magazine's co-founders and chief executives, David Mays and Ray Benzino, still control.
"We are pleased with what happened," The Source co-founder Dave Mays told AllHipHop.com. "It's significant step in the lawsuit that we brought and we are looking forward to taking the next couple of steps to getting things resolved and to get The Source out of the nonsense that's been distracting the company."
Mays and Scott filed a multi-million dollar lawsuit against the Black Enterprise Greenwich Street private equity fund in Feb., claiming board members colluded to steal the magazine and illegally outsted the pair from their executive positions.
In April of 2002 The Black Enterprise Greenwich Street Fund acquired 18% of The Source for $12 million dollars.
Mays and Scott said Textron Financial loaned the magazine another $18 million dollars three months after closing the Black Enterprise deal, at the behest of principals from Black Enterprise.
In January, Mays was terminated as CEO of the company, while Scott was fired from his position as president. The two were replaced by Jeremy Miller, current CEO/president, former COO and a longtime employee of the magazine.
Shortly after the lawsuit, Textron Financial attempted to auction Mays and Scott's shares in the company but on Feb. 23, Judge Lowe granted a temporary injunction preventing the sale of the stock, while he reviewed the facts in the case.
In early February, Mays retained the law firm of Cole, Schotz, Meisel, Forman & Leonard P.A., to help regain control of the magazine he founded in 1988 out of his Harvard University dorm room.
The injunction will remain in place while the judge prepares his first written decision in the multi-million dollar lawsuit, which also seeks to have Mays and Scott reinstated to their positions in the company.
"We've never given up our positions in the company, we have maintained that fact that we are 82% owners. It's suffice to say that the ruling was another successful step [in] exposing some of the stuff that's been going on behind the scenes," Mays continued. "When I got in the business with Black Enterprise, I trusted them and thought they were in it for the betterment of both parties. It's unfortunate to see it has come to this point."
Miller, the current CEO said that the chances were slim that Mays and Scott would ever return to the magazine on a day-to-day basis.
"I believe in the legal team Black Enterprise group has assembled," Miller said. "We have complete confidence that any legal maneuvers that Dave and Benzino will attempt in the future will be shut down."
Representatives for Black Enterprise were not available at press time.
Source: allhiphop.com
Judge Richard B. Lowe III upheld a temporary injunction granted last month, preventing Mays and Scott's shares of the company from being sold.
Textron Financial, The Source's bank, was attempting to auction the 82% majority share that the magazine's co-founders and chief executives, David Mays and Ray Benzino, still control.
"We are pleased with what happened," The Source co-founder Dave Mays told AllHipHop.com. "It's significant step in the lawsuit that we brought and we are looking forward to taking the next couple of steps to getting things resolved and to get The Source out of the nonsense that's been distracting the company."
Mays and Scott filed a multi-million dollar lawsuit against the Black Enterprise Greenwich Street private equity fund in Feb., claiming board members colluded to steal the magazine and illegally outsted the pair from their executive positions.
In April of 2002 The Black Enterprise Greenwich Street Fund acquired 18% of The Source for $12 million dollars.
Mays and Scott said Textron Financial loaned the magazine another $18 million dollars three months after closing the Black Enterprise deal, at the behest of principals from Black Enterprise.
In January, Mays was terminated as CEO of the company, while Scott was fired from his position as president. The two were replaced by Jeremy Miller, current CEO/president, former COO and a longtime employee of the magazine.
Shortly after the lawsuit, Textron Financial attempted to auction Mays and Scott's shares in the company but on Feb. 23, Judge Lowe granted a temporary injunction preventing the sale of the stock, while he reviewed the facts in the case.
In early February, Mays retained the law firm of Cole, Schotz, Meisel, Forman & Leonard P.A., to help regain control of the magazine he founded in 1988 out of his Harvard University dorm room.
The injunction will remain in place while the judge prepares his first written decision in the multi-million dollar lawsuit, which also seeks to have Mays and Scott reinstated to their positions in the company.
"We've never given up our positions in the company, we have maintained that fact that we are 82% owners. It's suffice to say that the ruling was another successful step [in] exposing some of the stuff that's been going on behind the scenes," Mays continued. "When I got in the business with Black Enterprise, I trusted them and thought they were in it for the betterment of both parties. It's unfortunate to see it has come to this point."
Miller, the current CEO said that the chances were slim that Mays and Scott would ever return to the magazine on a day-to-day basis.
"I believe in the legal team Black Enterprise group has assembled," Miller said. "We have complete confidence that any legal maneuvers that Dave and Benzino will attempt in the future will be shut down."
Representatives for Black Enterprise were not available at press time.
Source: allhiphop.com
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