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 (Date of earliest event reported): SEPTEMBER 9, 1998
THE PANDA PROJECT, INC.
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(Exact name of registrant as specified in its charter)
FLORIDA 0-24030 65-0323354
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(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification
Number)
901 YAMATO ROAD
BOCA RATON, FLORIDA 33431
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (561) 994-2300
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(Former name or former address, if changed since last report)
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Item 5. OTHER EVENTS.
On September 9, 1998, The Panda Project, Inc. (the "Company") was notified
that a judgment in the amount of $1,227,041.09 had been entered in the Circuit
Court for the 15th Judicial Circuit, Palm Beach County, Florida against the
Company in favor of plaintiff Joseph A. Sarubbi, a former director of the
Company. The Company has filed a motion for reconsideration of the judgment. The
Company believes the judgment contains certain inconsistencies which could merit
a significant reduction in the $987,125 damages awarded with respect to sales of
stock, plus a reduction in the approximately $200,000 in interest charges levied
related to the stock sale damages. The Company believes among other things that
the issue of when Mr. Sarubbi ceased to have relevant inside information related
to ongoing financings, quarterly results and ongoing business needs to be
reconsidered. Even if the Company's motion for reconsideration is unsuccessful,
the Company intends to appeal all adverse rulings to a satisfactory conclusion.
There can be no assurance that the motion for reconsideration will be granted,
or, if granted, that it will lead to any change in the judgment or a reduction
in the amount of the judgment. Unless the Company's motion for reconsideration
is successful, or, if the appeal is unsuccessful, the judgment could have a
severe adverse impact on the Company's business, financial condition and results
of operations.
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<PAGE>
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.
THE PANDA PROJECT, INC.
By: /s/ KEVIN J. CALHOUN
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Kevin J. Calhoun
Dated: September 15, 1998 Chief Financial Officer
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