<p align= justify >The Complaint alleges that plaintiffs bring this action against three individuals (“Fraud Defendants”) for their violations of Sections 10(b) and 27 of the Securities Exchange Act of 1934 and fraudulent transfer under Florida Statutes Chapter 726. Plaintiffs’ claims arise from a fraudulent scheme perpetrated by the Fraud Defendants by which hundreds of investors were defrauded out of approximately $22 million through investments in a group of corporate entities that Defendants owned or controlled.</p> <p align= justify >Specifically, Defendants used the following entities to defraud investors: Nexstar Communications, LLC; TMT Equipment Company, LLC; TMT Management Group LLC; POSA, LLC; POSA TMT, Camtucket LLC; Televest Communications, LLC; TMT International, LLC, Televest Group, LLC; KBK Partnership LLP; Chilham LLC; Spin Drift, LLC (collectively the “Defendants’ Entities”).</p>
<p align= justify >Most of the Defendants’ Entities are currently in receivership as a result of an action brought by the Securities and Exchange Commission on February 2, 2006, in the United States District Court for the Middle District of Florida, SEC v. Digges, et al., Case No. 6:06-cv-137-Orl-19KRS (the “SEC Action”). With the filing of the SEC Action, the Securities and Exchange Commission exposed the Defendants’ Entities’ fraud. On that day, the SEC filed a Complaint for Emergency Injunctive and Other Relief, and the Court entered an Order granting the relief sought by the SEC Complaint.</p>
<p align= justify >It was only with the filing of the SEC Complaint that Plaintiffs and the Class became aware of the Defendants’ Entities’ fraud and uncovered the Fraud Defendants’ role in perpetrating an investment fraud.</p>