Nev. Justices Deny Private's Emergency Appeal Over Receivership

CARSON CITY, Nev. — The Nevada Supreme Court has denied Private Media Group's emergency motion to block a judge's ruling to appoint a receiver for the company, but the court also said that the full court would hear the matter at a later date.

"Resolution of this matter shall be expedited to the extent our docket permits," Nevada justices Nancy Saitta, Mark Gibbons and James Hardesty wrote in their order.

"Having considered appellant's motion for a stay, respondents' opposition and appellant's reply, we are not persuaded that a stay is warranted at this time," the Nevada justices ruled. "This denial is without prejudice to appellant's right to renew the motion in the event that appellant's listing on Nasdaq is clearly threatened.

"We also conclude that an expedited briefing schedule and consideration by the full court is appropriate. Accordingly, appellant shall have 15 days from the date of this order to file and serve an opening brief and appendix. Respondents shall have 15 days from the date the opening brief is served to file an answering brief."

Private attorney Robert Dotson, in a statement to the justices issued just prior to the ruling, called the proceedings a result of "essentially a hostile takeover action, coupled with a request for injunctive relief and shareholder derivative claims."

Private earlier argued that the "appointment of a general receiver with broad unlimited powers is inconsistent with the continuation of this public company and consequently the appointment should be stayed while the issue is reviewed."

In late August, a Clark County, Nev., judge entered an order appointing Eric Johnson, a Private director and CEO of Private division Sureflix, the receiver for the company.

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