The chairman of Nostalgia Network Inc. is claiming that a fast food franchisee and three of its officers devised a bizarre scheme to get control of his company.
Nostalgia reported late last year that a group of investors might try to take over the company (Daily Variety, Dec. 8, 1992), based on information in a Securities & Exchange Commission filing.
According to a complaint filed in U.S. District Court in Los Angeles on behalf of Gold’n M Television Inc., a company owned by Nostalgia chairman Michael Marcovsky, the defendants got Marcovsky to pledge 1.5 million Nostalgia shares guaranteeing a note executed by Michael E. Kassan, an attorney who had worked for both Nostalgia and defendant M/A Burgers Inc.
Kassan, according to the suit, signed the $ 1.8 million note because of purported financial irregularities at M/A at a time when the defendants “were acutely aware that financial or legal embarrassment to Kassan would impact adversely upon Nostalgia at a critical juncture in its affairs.”
The liabilities against Kassan, who is one of the defendants, were contrived the suit said. Last November, Gold’n M was notified that Kassan had not paid the note.
The suit seeks a return of the shares and an injunction against their transfer or use in voting plus unspecified punitive damages. Other defendants included M/A chief executive officer Gary Winnick and president David Lee. M/A operates Rally’s Inc. franchises in California and Nevada.