WILTON, Conn., April 29, 2011 (GLOBE NEWSWIRE) -- Drinks Americas Holdings, Ltd. (OTCBB:DKAM) today announced that it has settled its outstanding litigation. The Company is pleased to announce that the case of Richard Shiekman v. Drinks Americas, Inc., Drinks Americas Holdings, Ltd. and J. Patrick Kenny, Connecticut Superior Court for the Judicial District of Fairfield at Bridgeport, Docket Number CV 09 4028895 S has been settled to the mutual satisfaction of the parties. The case has been withdrawn.
Drinks Americas also recently announced that it had prevailed in a binding arbitration between Liquor Group and was awarded $664,659.05.
In the award, the arbitrator denied Liquor Group's claims, finding that Drinks Americas did not breach its contract with Liquor Group or any of its entities and that Drinks Americas did not tortuously interfere with Liquor Group's business. Accordingly, the arbitrator did not award any damages to Liquor Group.
The arbitrator found that Liquor Group's liquidation and failure to pay for Drinks Americas products sold by Liquor Group constituted a breach of contract by Liquor Group. The arbitrator further found that Drinks Americas was damaged by Liquor Group's breach in the amount of $180,058.62 and that, pursuant to the contract between the companies, such damages were to be tripled so that, damages and monies owed to Drinks Americas by Liquor Group became $540,175.86.
The arbitrator also found that pursuant to the contract between Drinks Americas and Liquor Group, Liquor Group was to pay any and all costs and expenses incurred by Drinks Americas in enforcing or establishing its rights under the agreement including reasonable attorney's fees. The arbitrator awarded Drinks Americas $120,605.15 in reasonable attorney's fees along with additional costs of $3,878.04 for a total of $124,403.19.
In summary, the arbitrator found that the total owed by Liquor Group or Liquor Group Holding for damages, fees and costs to be paid to Drinks Americas, is $664,659.05.
The Company also resolved litigation in the matter of Niche Magazine, which has also been settled to the mutual satisfaction of both parties.
About Drinks Americas
Drinks Americas develops, owns, markets, and nationally distributes alcoholic premium beverages including Willie Nelson's Old Whiskey River Bourbon, Olifant Vodka and Rheingold Beer.
For further information, please visit our new websites at www.drinksamericas.com and www.rheingoldbrewingcompany.com.
The Drinks Americas Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7881
Safe Harbor
Except for the historical information contained herein, the matters set forth in this release, including the description of the company and its product offerings, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility and low trading volume of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company's need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.
CONTACT: Charles Davidson Drinks Americas, Inc. 203-762-7000 cdavidson@drinksamericas.com
