GCT Responds to Suit Filed by Charles Hoefer
Global Caravan Technologies Inc. (GCT) has learned that a lawsuit was recently filed in Marion County (Indiana) court by Charles Hoefer,a founder of the company and its former CEO, against several individuals and entities connected to the company. Although GCT was not named in the lawsuit, many of the allegations challenge legitimate corporate actions. Specifically, in late April 2014, the GCT board addressed numerous self-serving demands of Hoefer that threatened the viability of the company. To protect the shareholders who invested millions of dollars in GCT, the board made the difficult decision to remove Hoefer as an officer and director and to terminate his employment. This decision was necessary and in the very best interests of the company and its shareholders.
The lawsuit will not affect the operations of the business. GCT is moving forward with plans for commercializing its valuable technology under the leadership of its board and an executive team led by Harrison Ding, chairman and president, and C.H. Douglas, interim CEO.
Hoefer’s lawsuit does not properly challenge the board’s actions and is subject to dismissal. Hoefer is using the court system to disparage the leadership of GCT and to undermine GCT’s opportunity for success. Hoefer’s claims that he is the rightful majority owner of GCT and that the company’s assets are being stolen from him are patently false. Hoefer never made any cash investment in the company. While Hoefer remains a minority shareholder, his attempts to claim GCT as his own at the expense of other shareholders is just wrong. In fact, his lawsuit, which reads as sensationalistic, defamatory, and error-ridden, demonstrates the same emotional, irrational and dangerous behavior that led to his necessary separation from the company.
The company would have preferred to address Hoefer’s concerns privately, but now will be compelled to address the lawsuit. The company stands by the actions of the Board of Directors and will vigorously fight to protect the shareholders’ assets from Hoefer’s spurious claims of ownership and control.
Ding, Douglas and other representatives of GCT will have no further comment at this time concerning Mr. Hoefer’s claims or the litigation.