ALEXANDRIA, VA --- August 20, 2002 --- A landmark judgment against Internet Company TutorNet was rendered last week in Alexandria, Virginia's U.S. District Court as reported in The Washington Post and The Potomac Tech Journal. The jury held corporate officers and entities accountable for fraud and misrepresentation by awarding over $178 million in compensatory and punitive damages to 13 shareholders. Additional claims on behalf of other shareholders will now be pursued.

"Imprecise or inflated statements to potential investors about the strength of revenues can be seen as half truths; moreover, casual use of the word "partnership" by Internet Companies to describe business relationships creates serious legal implications and potential consequences," says Ben DiMuro, Managing Partner of DiMuro, Ginsberg & Mook. "Corporate Leadership and Investor Relations personnel need to be well trained to clearly communicate and represent the true nature of revenues and affiliations to novice and sophisticated investors."

In the case of TutorNet, the Company claimed to have revenue-generating contracts and 'partnerships' with marquee Companies such as America Online (AOL), Prentiss Hall, ToysRUs and others. In some cases, no contract ever existed. In others, the contract was a "pay to play" advertising deal with no guaranteed revenue resulting. Nevertheless, TutorNet defendants falsely represented actual and projected revenue from these relationships whether they existed or not.

The various judgments against defendants - TutorNet.com Group, Inc. (TTNP); TutorNet.com, Inc; Euburn Forde, Founder, Chairman and former Chief Executive Officer; and Rajiv Dalal, Co-Founder and at one time Chief Financial Officer - represent one of the largest civil awards ever made by a jury in the State of Virginia. Primus Telecommunications (PRTL), Primus subsidiary Tutornet.com Services, Inc., CEO Paul Singh and CFO Neil Hazard were at one time defendants in the case; however, Judge Leonie Brinkema dismissed all Primus-related defendants midway through the two-week trial. Attorneys representing the shareholders intend to appeal that decision, and if successful, will seek to hold the Primus defendants responsible for the award of damages.

"The role of Primus in this case is a classic example of incubation gone awry," DiMuro adds. "Strategic investors and venture capitalists need to be vigilant in observing corporate formalities and maintaining their role as a passive investor."

Primus Telecommunications and the Primus-related defendants were originally part of the case because of an unusual relationship with TutorNet. Primus Telecommunications had signed a term sheet with Tutornet.com to acquire 19.9% of the company in return for a $400,000 investment with the rights to acquire up to 51% of the company when it went public. Primus also formed a wholly-owned subsidiary, TutorNet.com Services Inc., through which, they channeled their investment. Documents filed with governmental entities list Forde and Dalal as employees and officers of Primus subsidiary, TutorNet Services. Services administered the payroll and health benefits of the persons who were selling TutorNet's shares and Primus provided other infrastructure support to TutorNet.com. Primus, moreover, signed a letter to AOL representing that it had "partnered" with TutorNet and was providing it with financial and communications support as it embarked on its initial investment strategy. According to allegations raised by shareholders, Forde and Dalal were officers of the Primus subsidiary and Primus in effect employed the persons who Tutornet used to solicit funds using misrepresentations as found by the eight-person jury. As stated previously, Primus defendants were dismissed from the case midway through trial, and plaintiff's attorneys intend to appeal the decision.

Attorneys responsible for winning this extraordinary judgment in favor of their clients are: Wayne D. Collins of Collins & Watson, Houston, TX; John Clifford of Clifford, Lyons & Garde, Washington, D.C.; Ben DiMuro of DiMuro, Ginsberg & Mook, Alexandria, VA; and G. P. Hardy III of Hardy & Johns, Houston, TX. To read more about this case, please see:

About DiMuro, Ginsberg & Mook
DiMuro, Ginsberg & Mook, P.C. is a specialized litigation firm located in Northern Virginia. The firm's practice focuses primarily on general and complex civil litigation in the areas of corporate & commercial law, business torts, criminal law, employment & labor law, and professional liability & ethics.