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Epixtar Reaches Agreement With
FTC
Friday, November 21, 2003 - 2:59 pm ET
Company to Resume Normal Operations
MIAMI - (BUSINESS WIRE) - Nov. 21, 2003--Epixtar Corp. (OTCBB:EPXR
- News) announced today that it entered a stipulated preliminary
injunction with the Federal Trade Commission allowing the
Company to resume normal operations. The Company has agreed
to enact certain controls and disclosures in the offering
of its ISP services to its customers as it relates to free-to-pay
conversion or negative-option sales. The agreement allows
the Company to immediately resume marketing.
The Company expressly denies all of the material allegations
set forth in the complaint and the stipulated preliminary
injunction expressly provides that it "shall not be interpreted
to constitute an admission by Defendants that they have engaged
in violations of any law or regulations, including the Federal
Trade Commission Act." Further, a spokesman for the Company
stated, "neither the agreement nor the initial action
relates in any way to the national do-not-call registry."
Previously the Company announced it had been sued by the
FTC and subject to an asset freeze and appointment of a temporary
receiver on October 30, 2003, in an action pertaining to the
marketing practices of the Company's ISP subsidiaries. The
mutually agreed upon injunction removes the asset freeze and
returns operational control of the entire company to management.
The temporary receiver has been discharged and the Company
and the FTC have further agreed to the placement of a court-appointed
interim monitor to have auditing and compliance powers over
the Company's ISP subsidiaries and their future sales and
marketing practices.
Additionally, the Company has agreed to the establishment
of an escrow account in part to provide additional reserves
for refunds and adjustments in the event a prior customer
"reasonably claims to have been billed without authorizing
the service or without having been informed that they would
be billed unless they contacted the company to cancel".
As of September 30, 2003, the Company's reserve balances at
LEC's and billing companies was over $6.3 million.
"Thanks to the professionalism of counsel for both Epixtar
and the FTC, a reasonable preliminary injunction was agreed
upon by the parties, and we will work to resolve the entire
litigation as soon as possible," said Martin Miller,
chairman and CEO of Epixtar. "The Company will now resume
operations, particularly our call center development plans
in India and the Philippines."
About Epixtar Corp.
Epixtar is a provider of marketing services - aggregating
contact center capacity and robust infrastructure to deliver
comprehensive, turnkey solutions. From campaign design through
ongoing management, Epixtar delivers value-driven, creative
solutions for telesales initiatives. Epixtar combines global
capacity with innovative performance-based compensation and
proven methodology to deliver highly successful marketing
campaigns. Leading companies use Epixtar's marketing expertise
and contact center capacity to acquire, support, and enhance
the customer experience, reduce costs and generate top-line
revenue. Based in Miami, Florida, Epixtar conducts operations
in India, the Philippines, and the Caribbean.
Safe Harbor Statement
This release contains statements about expected future events
and financial results that are forward looking. These statements
are based on our estimates and assumptions and are subject
to risks and uncertainties. Actual results could be affected
by a downturn in the economy, new competitive products, slower
rate of growth in member base, higher than anticipated cancellations,
unforeseen expenses, or technical failure related to self
generating web site development or inability to scale server
capacity to meet demand. Forward-looking statements include
the information concerning our possible or assumed future
results of operations. Forward-looking statements also include
those preceded or followed by the words: "anticipates,"
"believes," "estimates," "hopes"
or similar expressions. For those statements, we claim the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act
of 1995.
Contact
Epixtar Corp., Miami
Public Relations:
Harry B. Fozzard
hfozzard@epixtar.com
Source
EPIXTAR CORP.
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