In copyright and trademark litigation the argument is often over whether a graphic representation or music is “substantially similar” or “strikingly similar” to a pre-existing copyrighted or trademarked item. In the continuing saga of Mount Kellett Capital Management, its behavior with its participation in Baja Mining is looking “strikingly similar” to its participation in Evoq Properties (formerly known as Meruelo Maddux Properties).
It has been reported and much discussed in Baja Mining stockholder discussions (such as at http://www.stockhouse.com, about how directors of Baja Mining that resigned may be brought back as directors as allies of Mount Kellett which narrowly lost a vote to get two directors seats and to depose two board members who were opposing Mount Kellett’s agenda. In the case of the management of Evoq Properties, prior to the takeover certain higher level management had either quit under a cloud or were terminated. They went to Mount Kellett and sold them a bill of goods about their purported knowledge and expertise about the company, made common cause with Mount Kellett and facilitated its takeover.
Mount Kellett brought these disloyal and disgruntled managers back with their own team to run Evoq. What transpired was that (a) one of the managers brought back began initiating sexual relationships with female employees and insuring that they be paid more than women who didn’t accept his advances, (b) the new management team began a pattern and practice of canning minority employees and minority contractors, (c) one of the new management team began keeping two sets of books, (d) they fired and retaliated against the security director because he refused to commit criminal and civil offenses and blew the whistle on company criminality, and (e) they fired an employee for no reason other than that he was Gay.
More news to follow tomorrow, as I expect yet another lawsuit to hit Evoq and its other Mount Kellett affiliated entities with details of these and other juicy revelations.
So, Baja Mining shareholders may want to think very carefully if they see Mount Kellett bringing back disgruntled ex-directors in its effort to takeover the company.