CMG Holdings Group Inc (OTCMKTS:CMGO)’s CEO and Chairman Glenn Laken released a report to update shareholders on the recent corporate developments. The report stated that last year in June, the company submitted a modified complaint against former staff and officers of XA and the firms owned by them. The company has been harmed by the measures of this group following which it is determined to recover the losses.

The details

CMG Holdings reported that attorney Lawrence Steckman is representing the company in this matter. He is a known name and is appreciated for his experience and expertise in prosecuting civil racketeering lawsuits worldwide. He has also written extensively on the respective subject.

In his opinion, the case filed by CMG Holdings fulfills all the requirements and qualifications for a sustained and successful Civil RICO complaint. The company, through the filing of case, seeks verdict against former XA officers and employees including, but not confined to, attorney’s fees, treble damages, and other costs valid under the RICO statute.

The highlights

In other news, CMG Holdings reported that it has been in talks with numerous groups related to its subsidiary firm, Good Gaming. It is an e-sports tournament and gaming site that targets recreational gamers. In December 2014 the subsidiary conducted a record-breaking debut tournament together with Activision Blizzard. It also intends to create a spinoff for Good Gaming.

The CEO stated that as company’s long-term shareholders are aware, until mid-2014 “XA” was a very important asset of CMG Holdings, generating significant revenue. The management expects that a successful verdict against the defendants of filed lawsuit will fix a considerable amount of the harm company witnessed as a result of their actions.

In last trading session, the stock price of CMG Holdings declined more than 18% to close the trading session at $0.00180. The decline came at a share volume of 66 million compared to average share volume of 11 million.