Beverly
Hills, CA - In a short hearing held Monday morning in Los
Angeles, before United States Magistrate Judge Ralph Zarefsky,
Defendant Robert N. Rooks and all of his co-defendants, were
each ordered to pay $2,000 in sanctions for failing to produce
evidence required under federal court rules. In addition, Rooks
and his co-defendants were ordered to comply without objection
to all of Allied Artists’ discovery requests.
Judge Zarefsky’s ruling follows the ouster of a countersuit
filed by Rooks that contended Allied Artists granted him rights
to use the trademark. In a seven page ruling issued on August 7,
2009, United States District Judge Gary A. Feess wrote that
Rooks’ theory “makes no sense,” and ordered that Rooks’
countersuit be dismissed with prejudice, conclusively
prohibiting him from raising the same claims in the future.
In December of last year, Allied Artists International, the
parent of Allied Artists Pictures, Allied Artists Music Group
and Allied Artists Associated Entertainment Ventures, filed a
fifty million dollar trademark infringement suit against Rooks,
two infringing corporations and four co-defendants. The action,
case number CV08-08116-GAF(RZx), stems from Rooks’ having formed
California and Nevada entities both named, “Allied Artists
Pictures Corporation,” and launching counterfeit “Allied
Artists” websites. Rooks and his co-defendants are charged with
creating the counterfeit websites and infringing on the Allied
Artists trademark, in a fraudulent scheme to artificially
elevate the stock price of their fledgling International Synergy
Holding Company, Ltd, which is publicly traded on the Frankfurt
Exchange under trading symbol IBS.F. Allied Artists alleges that
the quintet falsely claimed in an August 8, 2008 press release
that International Synergy had “acquired Allied Artists Pictures
Corporation,” in a scheme to defraud investors who believed they
were investing in the real Allied Artists.
Rooks is already restrained by a 2002 federal court injunction
granted in a case brought by the United States Securities and
Exchange Commission, in which a Los Angeles federal court found
that Rooks disseminated false and misleading information in 1996
that caused a publicly-traded company's stock price to skyrocket
from $.13 to $4, or more than 3,000%.
“Allied Artists is aggressively pursuing Mr. Rooks, to put a
stop to his unlawful use of our trademark to lure unsuspecting
investors,” said the company’s President, Robert Fitzpatrick,
adding that “we expect to seek a final judgment against him and
his co-defendants later this month.”
The history of Allied Artists is long, varied and legendary.
Throughout the years, the Allied Artists brand has been
associated with such classic motion pictures as "Papillon,"
starring Steve McQueen and Dustin Hoffman, "Cabaret," with Liza
Minnelli and Joel Grey, "Tickle Me" starring Elvis Presley, and
"The Man Who Would be King," starring Sean Connery, Michael
Caine and Christopher Plummer, to name but a few.
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