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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 9, 1996
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Choices Entertainment Corporation
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-17001 52-1529536
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(State or Other Jurisdiction (Commission (IRS Employer
Of Incorporation) File Number) Identification No.)
220 Continental Drive, Suite 102, Newark, Delaware 19713
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 366-8684
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On April 9, 1996, a lawsuit was filed against Choices Entertainment
Corporation (the "Company") in the Superior Court of California, County of Los
Angeles, entitled Gary N. Gibbs, et al. v. Choices Entertainment Corporation, et
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al., No. BC147815, by certain individuals who allegedly purchased or purchased
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and sold securities of the Company. It is alleged in the complaint that the
Company made false and misleading statements in public communications and in
reports filed with the Securities and Exchange Commission. Also named as
defendants in the complaint are the members of the Board of Directors, a former
director and certain law firms which represented the Company. Plaintiffs are
seeking monetary damages in an amount to be determined, but exceeding $25,000,
plus attorney's fees, costs of suit and such other relief as the Court deems
just. The plaintiffs are primarily the same individuals who, as previously
reported, had made a claim in excess of $325,000, exclusive of attorneys' fees,
against the Company, with regard to substantially the same allegations as now
set forth in the complaint. The Company does not believe that there is any merit
to the lawsuit filed against it and intends to contest it vigorously. However,
if the Company is unsuccessful in defending the lawsuit, the Company would not
presently be able to satisfy an award of damages in the amount claimed, which
judgment would, if enforced, materially and adversely affect the Company's
business. Furthermore, even if the Company is successful in defending the
lawsuit, the cost alone in professional fees could materially and adversely
affect the Company's business.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
CHOICES ENTERTAINMENT CORPORATION
(Registrant)
Date: April 17, 1996 By: /s/ Ronald W. Martignoni
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Ronald W. Martignoni
Chief Executive Officer
