SALT LAKE CITY, Aug. 23, 2005 (PRIMEZONE) -- Beneficial Holdings, Inc. (Pink Sheets:BFHJ) commenced legal action against retailer CVS Pharmacy, Inc. (NYSE:CVS) as well as its product broker Contemporary Marketing Inc. after months of attempting to collect payment for product Beneficial manufactured and shipped to CVS in response to CVS purchase orders. The lawsuit is currently pending in the United States District Court, Civil No.: 2:05CV0439. CVS subsequently filed an action in the District Court in Rhode Island seeking to have the issues regarding payment of Beneficial's invoices heard in its home-town court. The District Judge in Utah will determine if Beneficial's claims will remain in Utah or be tried in Rhode Island. Beneficial's lawsuit alleges several causes of action against each defendant including fraud, breach of contract, interference with contractual relations and, most significantly, failure on the part of CVS to pay its bill in the approximate amount of $1.2 million. The lawsuit further alleges that CVS's failure to pay for the product it has received has caused Beneficial substantial damage including the loss of $1.2 million in revenues as well as millions of additional dollars in lost profits and sales.
Based upon reports Beneficial has received from at least one former CVS vendor, Beneficial is in the process of determining whether a class action suit against CVS may be viable. In the meantime, Beneficial is hopeful that its claims against CVS will be successful and that CVS will be required to pay for the product it ordered and received, in addition to millions of dollars in consequential damages for the losses Beneficial alleges in its lawsuit. Regardless of the outcome of the subject litigation, Beneficial's President, Harvey Carmichael, has indicated a commitment to forging ahead and working hard to make the company a success.
About Beneficial Holdings:
Beneficial Holdings is an innovative, nutraceutical company based in Salt Lake City, Utah that has developed several unique lines of dietary supplements marketed under the name of Beneficial Health Systems. Beneficial's current product lines can be viewed at www.BFHJSTOCK.com,www.WillpowerRX.com;www.EnjoyRX.com,and www.EnduranceRX.com. Beneficial is committed to being a market leader and innovator within the nutraceutical field.
This press release contains forward-looking statements, which are made pursuant to the Safe Harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different. Factors include, but are not limited to, available funding, market competition, recruitment and retention of personnel, dependence on key personnel and certain risks associated with projects in which the Company is engaged to complete and others. The forward-looking statement should be considered in light of these risks and uncertainties. The Company disavows any obligation to update or correct any of its forward-looking statements.