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T.G. Sheppard Resumes Recording Contract Litigation

Country music artist T.G. Sheppard has resumed litigation against MSH Entertainment Corp. and Robert Maerz and is seeking damages in excess of $1 million from both.

In September 1999, Sheppard filed a complaint in the U.S. District Court, Central District of California against MSH Entertainment Corp. (MSHE) and Robert T. Maerz for breach of contract, breach of implied covenant of good faith and fair dealing, unjust enrichment, fraud, negligent misrepresentation, declaratory relief, accounting and permanent injunction as a result of MSH Entertainment Corp. materially breaching its recording agreement with T.G. Sheppard, dated Aug. 1, 1997.

According to Barry Rothman, Sheppard's attorney, Sheppard said that he believes that the litigation that was filed in 1999 against MSHE and Maerz was never reported to MSHE's shareholders, nor was the litigation ever disclosed on any of MSHE's mandatory reporting requirements to the Securities and Exchange Commission.

Rothman says Sheppard has suffered substantial damage to his recording career as a result of MSHE failing to account to Mr. Sheppard and wrongfully assigning the record masters Sheppard recorded under the contract to Outwest Entertainment in respect to MSHE's settlement with Outwest Entertainment, without the knowledge or consent of Sheppard.

According to Rothman, he believed this matter was settled about two months ago in a settlement conference in U.S. District Court, noting that Maerz made certain representations to a U.S. District Court judge regarding settlement. However, last week he recanted on his settlement offer. Rothman believes that MSHE is subject to a malicious prosecution action at the conclusion of trial in respect to certain meritless cross claims that have been asserted by MSHE.