SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 28, 2005
(April 26, 2005)
Market Central, Inc.
Delaware 0-22969 59-3562953
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(State or other jurisdiction (Commission File ID No.) (IRS Employer No.)
of incorporation)
7810 Ballantyne Commons Parkway
Suite 300
Charlotte, NC 28277
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(Address of principal executive offices)
(704) 319-2250
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(Registrant's telephone number, including area code)
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c)) SECTION 8 - OTHER EVENTS
Item 8.01 Other Events
As described in the Company's Quarterly Report on Form 10-QSB for the quarter
ended May 31, 2004, and in the Company's Current Report on Form 8-K dated
October 26, 2004, Tweddle Litho Company ("Tweddle") in October 2003 filed a
complaint against the Company and Gibralter Publishing, Inc. in the United
States District Court, Eastern District of North Carolina. As a result of issues
discussed below with respect to the mishandling by the Company's counsel of such
litigation, the Company settled the litigation by paying the sum of $400,000 to
Tweddle.
Notwithstanding the settlement of the litigation, the matter was referred to the
U.S. Attorney's office for the Eastern District of North Carolina to investigate
whether the Company had engaged in conduct that constituted criminal contempt of
court. After a thorough investigation in which the Company cooperated fully, on
October 20, 2004, the Company entered into a plea agreement pursuant to which it
agreed to plead guilty to criminal contempt and pay a $50,000 fine. The plea
agreement remained under advisement until was considered again by the Court on
April 26, 2005, at which time the Court accepted the plea agreement and placed
the Company on probation for one year. The Company paid the $50,000 fine on
April 28, 2005.
The Company believes that both the civil and criminal liability issues arose as
a result of the Company's former counsel failing to properly defend the Company
and failing to properly notify management of the Company of either the hearing
or the summary judgment order described in the Company's Quarterly Report
referenced above. As a result of such malfeasance and nonfeasance, the Company
took actions which violated the summary judgment order, resulting in the
settlement of the civil litigation and the subsequent criminal charges. The
actions included the sale of a subsidiary.
The Company intends to vigorously pursue legal action against the Company's
former counsel and his law firm for damages resulting from his and its alleged
malfeasance and nonfeasance.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
Market Central, Inc.
(Registrant)
Dated: April 28, 2005 By: /s/ Clifford Clark
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Clifford Clark, Chief Financial Officer