White Winston Select Asset Funds has sued Multimedia Platforms, the publicly-traded holding company which owns LGBT publications Next, Frontiers and Florida Agenda among others, for allegedly "engag[ing] in fraudulent and deceptive trade practices, along with negligent misrepresentations" in order to secure a credit facility, and the investment firm has obtained a temporary order freezing the media company's cash and assets pending an October 4 court hearing which resulted in the shutdown for its multiple titles as reported by South Florida Gay News: "if proven, representations such as these can potentially lead to Securities and Exchange inquiries, and even federal criminal charges as it involves interstate commerce."
Multimedia Platform CEO Bobby Blair in a written statement vows to "fight the case vigorously," and says some departed management "screwed up, and I have to fix it."
Multimedia Platforms long has been in financial straits, and disclosed in SEC filings that its "financial conditions . . . raise substantial doubt as to our ability to continue as a going concern." Indeed, last year this blog Friends of Ours placed no faith in Multimedia Platforms, and presciently warned about the folly of investing in the company by aptly noting "a lottery ticket probably has a better chance of hitting the powerball numbers than Multimedia Platforms has of obtaining sufficient dollars from corporate advertisers in order to make it a profitable operation."