Geeks On Call Rejects Claims
11 December 2008 - 9:32AM
PR Newswire (US)
NORFOLK, Va., Dec. 10 /PRNewswire-FirstCall/ -- Geeks On Call
Holdings, Inc. (OTC:GOCH) (BULLETIN BOARD: GOCH) , a premier
national provider of professional IT solutions to small business
and residential customers through its national network of franchise
and Company-owned locations under the trade names Geeks On Call(R),
1-800-905-GEEK(TM), CallTheGeeks.com(TM) and Call The Geeks(TM),
announced today that the Company had been served with individual
lawsuits from several franchisees. All of the suits were filed by
the counsel for a recently formed franchise association. The suits,
all substantially identical, claim that Geeks on Call is
responsible for a financial downturn allegedly experienced by the
Plaintiffs. The suits point to the recent introduction of
CalltheGeeks.com as a cause of diminished revenue.
CalltheGeeks.com, remote technical support, is not offered in areas
currently served by franchises. Company records show that many of
the franchisees who filed suit are, in fact, showing year to date
revenue exceeding prior year revenue. Current economic data
indicates that the small business community is choosing to repair
rather than replace computers, a trend that bodes well for our
franchisees within the IT sector. Unfortunately, rather than
working with the Company to seek out and capitalize on this
opportunity, these franchisees chose to file suit. Mark
Baumgartner, General Counsel for Geeks On Call Holdings, Inc.
stated "the allegations in the Complaint are without merit.
Numerous Plaintiffs had previously been notified that they were in
breach of their franchise agreements. We know that many of these
Plaintiffs have been more focused on disparaging the Company than
on building their business. Unfortunately, their disparagement
harms the Company and the Geeks on Call franchise community as a
whole." The Company is also aware that some of the Plaintiffs, on
behalf of the group, approached a former employee to assist them in
building a competitive business model in violation of the franchise
agreement. Today, the Company was granted an injunction preventing
the former employee from giving the Plaintiffs any of the Company's
proprietary information. The Company is reviewing an action plan to
aggressively protect the integrity of the system, the Geeks on Call
brands, and franchise partners and serve the best interests of its
shareholders. About Geeks On Call Geeks On Call is a wholly owned
subsidiary of Geeks On Call Holdings, Inc. (OTC:GOCH) (BULLETIN
BOARD: GOCH) . Founded in 1999, the Company is a pioneer in the
mobile, rapid-response on-site IT service concept. Under the trade
names Geeks On Call(R), 1-800-905-GEEK(TM), and
CallTheGeeks.com(TM), the Company's certified IT professionals
service small businesses and residential customers through its
national network of franchise and Company-owned locations. They
provide computer privacy and security solutions, hardware and
network installations and troubleshooting, as well as repairs,
upgrades and consulting. Geeks On Call also co-markets through
endorsed vendor relationships with other Franchisors, who offer GOC
services to their franchisees as a value-added benefit. Over 250
independently owned and operated franchises have been granted, with
new franchise and Corporate locations opening regularly. For more
information, including franchising or Value-Added Benefit Program
opportunities, call 1-800-905-GEEK or visit
http://www.geeksoncall.com/. Send an email of inquiry to . Contacts
Investor Relations: Jennifer Allesandro Geeks On Call I/R (757)
531-7410 Media Relations: Shana Keith Porter Novelli (404) 995-4557
DATASOURCE: Geeks On Call CONTACT: Jennifer Allesandro, Investor
Relations of Geeks On Call, +1-757-531-7410, ; or Media Relations,
Shana Keith of Porter Novelli for Geeks On Call, +1-404-995-4557,
Web site: http://www.geeksoncall.com/
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