Paragon Board Responds to Gad's Latest Misleading Statements - Shareholders Deserve the Truth
Paragon Technologies (OTCPK:PGNT) has issued a strong rebuttal to former Chairman and CEO Hesham "Sham" Gad's recent statements. The company alleges that Gad worked illegally in the US for over 20 years while failing to disclose this information, exposing Paragon to legal and reputational risks. The board criticizes Gad for prolonging litigation after bylaws were repealed, potentially costing shareholders millions. The company refutes Gad's accusations of concealment and states that shareholders can request access to the complaint against former corporate counsel. The board emphasizes that legal filings demonstrate Gad's pattern of deceit and mismanagement, urging shareholders to rely on factual information rather than his distortions.
Paragon Technologies (OTCPK:PGNT) ha risposto con forza alle recenti dichiarazioni dell'ex Presidente e CEO Hesham "Sham" Gad. L'azienda accusa Gad di aver lavorato illegalmente negli Stati Uniti per oltre 20 anni senza rendere nota questa informazione, esponendo Paragon a rischi legali e di reputazione. Il consiglio critica Gad per aver prolungato le controversie legali dopo l'abrogazione dello statuto, con un potenziale costo di milioni per gli azionisti. La società nega le accuse di occultamento mosse da Gad e afferma che gli azionisti possono richiedere l'accesso alla denuncia contro l'ex consulente legale aziendale. Il consiglio sottolinea che i documenti legali evidenziano un modello di inganno e cattiva gestione da parte di Gad, invitando gli azionisti a basarsi su informazioni fattuali anziché sulle sue distorsioni.
Paragon Technologies (OTCPK:PGNT) ha emitido una firme refutación a las recientes declaraciones del ex Presidente y CEO Hesham "Sham" Gad. La compañía alega que Gad trabajó ilegalmente en EE.UU. durante más de 20 años sin revelar esta información, exponiendo a Paragon a riesgos legales y de reputación. La junta critica a Gad por prolongar litigios tras la derogación de los estatutos, lo que podría costar millones a los accionistas. La empresa rechaza las acusaciones de ocultamiento de Gad y afirma que los accionistas pueden solicitar acceso a la denuncia contra el ex asesor legal corporativo. La junta enfatiza que los documentos legales demuestran un patrón de engaño y mala gestión por parte de Gad, instando a los accionistas a basarse en información fidedigna en lugar de sus distorsiones.
Paragon Technologies (OTCPK:PGNT)는 전 회장 겸 CEO Hesham "Sham" Gad의 최근 발언에 대해 강력히 반박했습니다. 회사는 Gad가 20년 넘게 미국에서 불법으로 근무했으며 이를 공개하지 않아 Paragon이 법적 및 평판 위험에 노출됐다고 주장합니다. 이사회는 Gad가 정관이 폐지된 후 소송을 장기화해 주주들에게 수백만 달러의 비용을 초래할 수 있다고 비판합니다. 회사는 Gad의 은폐 주장에 반박하며 주주들이 전 법률 고문에 대한 고소장 열람을 요청할 수 있다고 밝혔습니다. 이사회는 법적 문서들이 Gad의 기만과 경영 부실 패턴을 보여준다며, 주주들이 그의 왜곡된 주장 대신 사실에 근거한 정보를 신뢰할 것을 촉구합니다.
Paragon Technologies (OTCPK:PGNT) a fermement réagi aux récentes déclarations de l'ancien président et PDG Hesham "Sham" Gad. La société accuse Gad d'avoir travaillé illégalement aux États-Unis pendant plus de 20 ans sans divulguer cette information, exposant Paragon à des risques juridiques et réputationnels. Le conseil d'administration critique Gad pour avoir prolongé les litiges après l'abrogation des statuts, ce qui pourrait coûter des millions aux actionnaires. L'entreprise réfute les accusations de dissimulation de Gad et indique que les actionnaires peuvent demander l'accès à la plainte contre l'ancien conseiller juridique de l'entreprise. Le conseil souligne que les documents juridiques démontrent un schéma de tromperie et de mauvaise gestion de la part de Gad, invitant les actionnaires à se baser sur des informations factuelles plutôt que sur ses déformations.
Paragon Technologies (OTCPK:PGNT) hat eine deutliche Gegendarstellung zu den jüngsten Aussagen des ehemaligen Vorsitzenden und CEO Hesham "Sham" Gad veröffentlicht. Das Unternehmen wirft Gad vor, über 20 Jahre illegal in den USA gearbeitet zu haben, ohne diese Information offenzulegen, was Paragon rechtlichen und reputativen Risiken aussetzte. Der Vorstand kritisiert Gad dafür, nach der Aufhebung der Satzung Rechtsstreitigkeiten verlängert zu haben, was die Aktionäre Millionen kosten könnte. Das Unternehmen weist Gads Vorwürfe der Verschleierung zurück und erklärt, dass Aktionäre Zugang zu der Beschwerde gegen den ehemaligen Unternehmensjuristen beantragen können. Der Vorstand betont, dass die rechtlichen Unterlagen Gads Muster von Täuschung und Missmanagement belegen und fordert die Aktionäre auf, sich auf Fakten statt auf seine Verzerrungen zu verlassen.
- Board's commitment to transparency by offering shareholders access to legal documents
- Bylaws that were subject to litigation have been repealed
- Ongoing legal disputes with former CEO potentially costing shareholders millions
- Former CEO's undisclosed illegal work status exposed company to legal and reputational risks
- Corporate governance issues and leadership conflicts may impact company stability
Gad Continues Pattern of Lying to Shareholders and Misrepresenting the Facts
EASTON, PA / ACCESS Newswire / May 20, 2025 / Paragon Technologies' (OTCPK:PGNT) ("Paragon" or the "Company") today responded to former Chairman and CEO Hesham "Sham" Gad's latest attempt to rewrite history, calling out his deliberate misinformation and ongoing efforts to mislead shareholders.
There's a reason Mr. Gad is no longer Chairman or CEO of the Company: his actions made him unfit to lead.
Gad's assertion regarding "false, damaging, and despicable statements" concerning the hiring of unauthorized workers is a blatant misrepresentation. The singular instance of an unauthorized hire involved Mr. Gad himself, who knowingly resided and worked illegally in the United States for over two decades. His failure to disclose this critical information not only betrayed Paragon's trust - it exposed the Company to significant legal and reputational risk.
Gad's baseless accusations against Directors Eriksen, Brownstein, Lontini, and Weiser are directly contradicted by the facts. The legal counterclaim against Gad, accessible at link to counterclaim, provides a comprehensive account of Mr. Gad's extensive history of dishonesty, alleged theft, and repeated breaches of fiduciary duty.
Additionally, Mr. Gad prolonged the litigation long after the bylaws he sought to have repealed were, in fact, repealed, potentially costing shareholders millions. His ongoing litigation included accusations against the new independent directors related to their adoption of the shareholder's rights plan. The independent directors believe they were adhering to their fiduciary duties in adopting the rights plan and were advised that Delaware case law suggests that it could be a breach of fiduciary duty for them NOT to adopt the plan in light of the threat of creeping control posed by the 40 percent plus shareholder group. Yet Gad sued, derived no benefit other than for himself at shareholder expense.
Gad's allegations of concealment regarding the recent litigation are even more unfounded. Gad was involved in the board discussions including the reasons for filing under seal. The current board has nothing to hide from shareholders. Shareholders wishing to obtain a copy of the complaint filed against the company's former corporate counsel can do so by making the request at info@pgntgroup.com. What Mr. Gad fails to disclose to shareholders is that the litigation demolishes his contrived entrenchment theory against Mr. Weiser and the Board. In fact, in the board's discussions, Gad's only objection was that the facts made him look bad. If the facts make him look bad, so be it.
The Board urges all shareholders to see through Mr. Gad's self-serving rhetoric for what it is: a transparent attempt to divert attention from his own actions and obstruct the current leadership's commitment to transparency and accountability. We encourage shareholders to rely on factual information, including the detailed legal filings that expose Mr. Gad's long-standing pattern of deceit and mismanagement, rather than his continued distortions. The Board remains focused on transparency, accountability, and protecting the long-term interest of Paragon's shareholders.
About Paragon Technologies
Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments. For additional information please visit: www.pgntgroup.com.
Investor Relations Contact:
Alliance Advisors IR
ParagonIR@allianceadvisors.com
SOURCE: Paragon Technologies Inc.
View the original press release on ACCESS Newswire
FAQ
What are the main allegations against former PGNT CEO Hesham Gad?
How can PGNT shareholders access the complaint against former corporate counsel?
What actions has Paragon's board taken regarding transparency?
Why did PGNT's board adopt a shareholder rights plan?
