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Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: June 10, 1999
SIONIX CORPORATION
(Exact name of registrant as specified in its charter)
Utah 2-95626-D 87-0428526
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
9272 Jeronimo Road, Suite 108
Irvine, California 92618
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(Address of principal executive offices)
Registrant's telephone number, including area code:
(949) 454-9283
Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On June 10, 1999 Sionix Corporation (the "Company") filed an action
against Jack Moorehead, Dascore, LLC, S. Donna Friedman and certain others in
the U.S. District Court for the Southern District of California (Case No.
99-cv-1201-K-LSP). Moorehead is the former President of the Company, and Dascore
LLC is an entity controlled by him and in a business related to that of the
Company. S. Donna Friedman is a former officer and director of the Company.
The Complaint alleges, among other things, that the defendants have
infringed and continue to infringe on certain patents owned by the Company, and
that they are familiar with the Company's intellectual property through their
past positions with the Company. The Complaint also alleges that the defendants
have sold or attempted to sell technology owned by the Company and covered by
the Company's patents, and that the defendants are unfairly competing with the
Company by exploiting its technology without payment. In addition, the action
includes claims of false advertising, in that the defendants are falsely
representing that they own the technology; interference with economic relations
and interference with prospective advantage, relating to the effect that the
defendants' conduct has had on the Company's dealings with third parties; and
misappropriation of trade secrets learned by the defendants while associated
with the Company. The complaint further alleges that the defendants conspired to
convert technology, money and equipment owned by the Company, and used Company
funds to pay personal expenses. Finally, the complaint alleges that Moorehead
and Friedman defrauded the Company and breached their fiduciary duties to the
Company in connection with their departure from the Company and their retention
of property of the Company.
In the Complaint, the Company seeks monetary damages in an amount to be
determined, injunctive relief, an accounting and a declaratory judgment.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99 Press release dated July 9, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Sionix Corporation
By: /s/ James J. Houtz
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James J. Houtz, President
Date: July 9, 1999
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Exhibit 99
SIONIX CORPORATION ANNOUNCES FILING OF LAWSUIT AGAINST FOUNDER
Irvine, California (July 9, 1999). James J. Houtz, President of Sionix
Corporation (OTCBB-SINX), announced the filing of a major lawsuit against Jack
Moorehead, the founder of Sionix, and certain others. The action charges
Moorehead, S. Donna Friedman and certain others with patent infringement, unfair
competition, false advertising, fraud, breach of fiduciary duties and conspiracy
in connection with their activities as officers and directors of Sionix and
their activities following their departure from Sionix.
"Since taking control of Sionix last summer, I have learned that
Moorehead and his confederates are using the technology developed by Sionix in a
new business that competes directly with Sionix" explained Houtz. "I also
learned that significant property of Sionix, including computers, drawings,
technical data and other items crucial to our business, were missing." Houtz
went on to say that "in order to protect the shareholders of Sionix, who paid
for the development of the technology, I felt I had no choice but to bring this
action to protect their investment."
Houtz stressed that the absence of the items has not prevented Sionix
from moving forward toward production. "It slowed us down somewhat" remarked
Dave Lambert, Director of Research and Development of Sionix, "but we believe we
have now advanced the technology beyond the level developed while Moorehead was
President."
According to Houtz, while investigation and development of the case
against Moorehead had been a distraction over the past few months, "now that the
case has been filed and is in the hand of the lawyers, the Sionix management
team can concentrate on the final development of our products and commencement
of regular manufacturing."
This news announcement may contain "forward-looking statements"' within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause actual results, performance and achievements of
Sionix Corporation to be materially different from any future results,
performance or achievements expressed or implied, such as differences discussed
in Management's Discussion and Analysis of the Financial Condition and Results
of Operations in the Annual Report on Form 10-K and other documents filed by
Sionix Corporation with the Securities and Exchange Commission.
