Contact: Joe R. Forman
Senior VP Corporate Relations
jforman@coserv.com
(940) 321-7810
TEMPORARY RESTRAINING ORDER AGAINST DIRECTOR MARK GLOVER EXTENDED; GLOVER TO SURRENDER KEY EVIDENCE
Corinth, TX – April 3, 2009 – Yesterday, Mark Glover agreed to an extension of a Temporary Restraining Order stopping him from distributing members’ confidential information and other specified information.
Attorneys for Denton County Electric Cooperative, Inc. (d/b/a CoServ Electric), along with Glover and his attorney met for several hours yesterday at the Denton County District Courthouse. The meeting culminated in an agreed extension of the Temporary Restraining Order against Glover in substantially the same form entered by the Court last week. As part of the agreement, Glover will also immediately begin surrendering the evidence to CoServ that the Court ordered Mr. Glover to produce last week. The parties intend to submit the agreement for the Court to enter as an Order.
CoServ Chief Executive Officer Mike Dreyspring commented, “Today’s agreement was another significant step towards retrieving the members’ confidential information and protecting the privacy of our members.”
Attorney for CoServ, Craig Florence, was equally pleased: “We were determined not to leave the courthouse until either Mr. Glover agreed to comply with the Court’s Orders or the Court ordered Mr. Glover to comply. Since Mr. Glover agreed to extend the Temporary Restraining Order and produce what I expect will be some of the most important pieces of evidence in the case, yesterday was very successful for CoServ.”
On March 23, 2009, CoServ filed a lawsuit against Glover, one of its Directors, alleging that Glover wrongfully distributed members’ confidential information—including members’ e-mail addresses and unlisted phone numbers—as well other confidential CoServ information that Glover obtained through his position as a director. In the lawsuit, CoServ alleges that Glover misappropriated trade secrets, breached his fiduciary duty as a director, and committed conversion, conspiracy, and breach of contracts.
On March 24, 2009, the Court issued a Temporary Restraining Order instructing Glover to immediately stop releasing members’ confidential information. The Temporary Restraining Order was originally set to expire on April 7, 2009, but based on today’s agreement, Glover will continue to be restrained until the Court issues a ruling on CoServ’s request for an injunction, which could potentially last until the end of the lawsuit. CoServ expects the Court to hold a hearing on the injunction request in late April or early May 2009.
On March 24, 2009, the Court also ordered Glover to produce a variety of evidence. At yesterday’s meeting, Glover agreed to a timeline for this production, beginning with Glover immediately turning over his cell phone and computers.
Yesterday’s agreement further requires that on April 6, 2009, Glover must reveal the names of anyone to whom Glover provided the members’ confidential information. “After we learn the identities of those individuals who received the members’ confidential information from Mr. Glover, we will ask them to return the information immediately and sign an affidavit swearing that they retain no other copies,” said Dreyspring. “CoServ is also asking anyone with information about the unauthorized release or possession of members’ confidential information to contact CoServ immediately” added Mr. Dreyspring. Glover previously admitted in writing to having released the members’ confidential information to at least one individual, who then subsequently used that member information to place automated phone calls to members.
Pursuant to yesterday’s agreement, on April 15, 2009, Glover must also provide CoServ with fifteen categories of documents, including documents relating to his alleged wrongful release of the members’ confidential information.
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About CoServ Electric: As a cooperative, CoServ is different. We’re local – deeply embedded in our community. CoServ is proud of its outstanding customer service to more than 142,000 homes and businesses across the DFW Metroplex. CoServ Electric has maintained rate stability for our members in providing power as close to cost as possible and provides some of the lowest electricity rates in North Texas. Our customer satisfaction scores have been consistently higher than our major competitors since we began participating in the American Customer Satisfaction Index (ACSI). And, surveys show that our members currently rate CoServ at an 8.3 on a scale of 1-10. Additional information about CoServ Electric can be found at www.coserv.com.
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