U.S. REPORT Clarke loses suit against DRX board

Former DRX (NASDAQ) president Robert Clarke recently lost his court battle against DRX and the New York holding company’s board of directors. The Delaware district court judge ruled in favor of DRX on all counts in the lawsuit which alleged, among other things, that the directors and two former employees had conspired to remove Clarke from his position.

The lawsuit filed in April, 1990, also accused DRX and its directors of violating federal securities laws and proxy rules.

Part of the relief Clarke sought included a declaration that the results of DRX’ last two annual shareholder meetings were invalid and that all actions taken by the current board were void.

DRX says the decision permits it to resume operations that its claims had been effectively blocked by Clarke’s suit.

“With this decision behind us, DRX can now move forward with its plan of restoring financial good health through joint venture opportunities and completing its transformation from an exploration company to a recognized precious metals producer,” said President Rudi Fronk. Clarke says he is planning to appeal.