American Statement Of Claim Short Version

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA

LIFECHOICE INTERNATIONAL INC., ROBERT KAP, DIMITAR HRISTOV, BORISLAV MARINOV, RADKA PETROVA, And LIFECHOICE BANQ1 CORPORATION

On behalf of themselves and all others similarly situated

Civil Action No. 3:00CV0649RM

Complaint Class Action

Plaintiffs, v. THE REPUBLIC OF BULGARIA THE NATIONAL SPECIALIZED INVESTIGATIVE SERVICE OF THE GOVERNMENT OF BULGARIA, THE MAIN PUBLIC PROSECUTOR’S OFFICE OF THE GOVERNMENT OF BULGARIA

Jury Trial Demanded

THE NATIONAL CENTRE FOR INFECTIOUS AND PARASITIC DISEASES And EMILIA MITKOVA and MARIO STOYANOV Defendants

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COMPLAINT

1.

This is a civil action brought for monetary relief under the Foreign Sovereign Immunities Act of 1976, 28 USC, Sections 1605 (a)(2)(3) and (a)(5), arising from pecuniary loss and injury suffered upon a breach of contract(s) having to be performed and direct interference with a commercial activity carried on within the territorial jurisdiction of the United States but rendered impossible by the breach(es) alleged and tortious acts claimed, arising from, inter alia, the willfully illicit non-discretionary and intentionally improper collection and seizure of private property, information and records; the withholding of private and proprietary data; unconsented disclosures to the Main Public Prosecutor’s Office, the Government of the Republic of Bulgaria, its members and individuals employed therein about confidential and proprietary property, information and records unlawfully collected by the National Specialized Investigative Service concerning the Plaintiffs and all other members of the Class hereinafter described; and on information and belief the exploitation of the property and records as well as dissemination and misrepresentation of the information by officials of the Main Public Prosecutor’s Office, the Government of the Republic of Bulgaria, its members and individuals employed therein, including officials, agencies or instrumentalities of Government of Bulgaria.

Jurisdiction And Venue 2.

This Court has original jurisdiction in personam according to 28 USC Section 1330 (a) over the allegations herein as to the Foreign Sovereign Immunities Act of this action pursuant to 28 USC Section 1605(a). This Court has jurisdiction over common law torts pursuant to 28 USC Section 1367(a), in that the claims are so related to claims within the original jurisdiction of the district court that they form part of the same case or controversy under Article III of the United States Constitution.

3.

Venue is proper in this district as to the allegations under the Foreign Sovereign Immunities Act pursuant to the provisions of 28 USC Section 1391(f)(1)(3), and the common law torts pursuant to 28 USC Section 1391(d) and 28 USC Section 1391(a).

Class Action Allegations.

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4.

This action is brought by Plaintiffs as a Class action on their own behalf and on behalf of all others similarly situated pursuant to and relying upon the provisions of 23 (a) and 23 (b) (3) of the Federal Rules of Civil Procedure for damages including costs and attorneys fees. The Class so represented by the Plaintiffs in this action of which Plaintiffs are themselves members, are all persons consisting of residents of the United States, Canada, Republic of Bulgaria and elsewhere who purchased or otherwise had inured to them a beneficial interest in Depositary Securities (the "Securities") acquired by Plaintiffs during the Class Period of 31 November 1993 to 31 December 1995 having applied for withdrawal or conversion of the securities to common shares or equity in property.

5.

The members of the Class are so numerous that joinder of all members is impracticable. While the exact number of class members is unknown to Plaintiffs at this time, it can be ascertained through appropriate discovery. Plaintiffs believe that there are thousands of members in the Class. As of April 1999 there were reported 3,257 persons, not including the Plaintiffs or residents outside the jurisdiction of the Republic of Bulgaria, Class members represent 100,000,000 million bearer depositary securities last recorded to be issued and outstanding.

6.

Plaintiffs claims are typical of the claims of all members of the Class as all members of the Class are similarly effected by Defendants' wrongful conduct and the breaches of contract and law, as complained of. There are common questions of law and fact in the action that relate to and affect the rights of each member of the Class and the relief sought is common to the entire Class. Namely, the Plaintiffs depend on a showing of the acts and omissions of Defendants giving rise to the right(s) of Plaintiffs to the relief sought herein as arises from breaches of contract arising from an improper and illicit collection, then withholding of private property, information, records and proprietary data by individuals employed in the service of the Defendant Government of Bulgaria, having acted with neither Plaintiffs consent or upon any legal occasion or discretionary right when, knowingly facilitating on account of said acts the willful interference with Plaintiffs' commercial activities in USA and elsewhere by exploitation and destruction of property and the unconsented disclosure and dissemination to other agencies or instrumentalities of confidential and proprietary information, including certain individual members of Defendant Government of Bulgaria and others employed therein, said breaches and acts thus giving rise to the breach(es) alleged and damages claimed herein, including costs and attorneys' fees.

7.

There is no conflict as between any individual named Plaintiff and other members of the Class with respect to this action or with respect to the claims for relief herein set forth. The named Plaintiffs are representative parties for the Class and are able to and will fairly and adequately protect the interests of the Class.

8.

This action is properly maintained as a class action pursuant to Federal Rules of Civil Procedure 23(b)(3) inasmuch as the questions of law and fact common to the members of the Class predominate over any questions affecting only individual members, and a class action is 3

superior to other available methods for fair and efficient adjudication of the controversy. Upon information and belief the actions taken by Defendants, jointly and severally, in scienter with other agencies or instrumentalities of Government of Bulgaria, were the same with respect to each Plaintiff; separate trials to prove liability issues common to the Class would be a waste of judicial resources. Furthermore, it is desirable to concentrate such litigation within the Court's District. Moreover the expenses of litigation would be likely to discourage the initiation of individual lawsuits concerning the actions at issue. Upon information and belief, there is as yet no other litigation involving the same controversy.

Facts 9.

Plaintiffs' commercial activity and investment in the United States and elsewhere relied heavily upon representations and contracts with Defendant Government of Bulgaria agencies or instrumentalities as to, inter alia, a) assignments of proprietary products for the treatment of HIV/AIDS; proprietary research data for the treatment of cancer; access to manufacturing and research facilities; technical, scientific and administrative support in FDA filings; b) options and rights granted to certain lands and buildings for installation of processing equipment to treat and refine waste oil products into fuel and thermoelectric energy; c) the right of free and unrestricted movement of private corporate securities; repatriation by foreign investors or corporations, of profits realized as cash or in the form of corporate securities; d) free and unrestricted movement of foreign origin or destined goods or services and protection under law from illicit seizure, exploitation or misappropriation of private property by agencies or instrumentalities of the Defendant Government of Bulgaria.

10. The result of these representations and contracts was that Plaintiffs invested heavily and entered into joint commercial activities in the United States, Canada and elsewhere but administered these activities from within the territorial jurisdiction of the Defendants and maintained, inter alia, inventories; equipment; manufacturing capacity; research and development; files; records; data; confidential and proprietary information each jointly and severally indispensable and essential to Plaintiffs commercial activities in the United States and elsewhere. 11. Plaintiffs revenues were dependent upon contracts and conduct of instrumentalities of the Defendant Government of Bulgaria upon which Plaintiffs relied to supply LifeChoice Inc. and HIV/AIDS patients in the United States and Canada with, inter alia, a proprietary and patented immunotherapy clinical drug "Factor - R" and derivatives thereof to control and limit onset of AIDS related secondary infections; development of hybrid synergetic compounds composed of 4

generic clinic drugs combining proprietary substances anticipated to effectively treat and control a number of cancers, some associated with the onset of AIDS. The Rapid approval by the United States Food and Drug Administration was anticipated by Plaintiffs on account of representations of Defendant Government of Bulgaria instrumentalities, the clinical work completed or underway and documental evidence in Defendant Government of Bulgaria possession. 12. Plaintiffs further relied upon instrumentalities of the Defendant Government of Bulgaria to deliver land, buildings and other facilities contracted for by LifeChoice S.A., a Republic of Greece corporation through the fiduciary of KANAMECO II A.D., a Republic of Bulgaria corporation, the lease operator manager for two microrefining and waste oil treatment units and related facilities as delivered to Tzarimir, Bulgaria, by Green Oasis Environmental Inc., a South Carolina State corporation, said units constituting a part of 15 units so ordered together with manufacturing and technological exploitation rights for the Republic of Bulgaria and elsewhere in the Balkans. 13. As a direct result of Defendant Government willful and intentional interference with key corporate management and illicit taking of Plaintiffs' property and later unlawful conduct of withholding said property, Defendants caused Plaintiffs money damages, suffering serious and substantial harm and adverse effects, including but not limited to the substantial and significant loss of realizable profit and opportunity from, inter alia: a) new clinical drugs and therapeutic technology for the treatment of HIV/AIDS and cancer; b) clinical research and development work halted; c) the manufacture, leasing and operation of waste oil treatment, micro-refining and thermoelectric facilities, d) the out-of-pocket expenses and loss of time necessarily incurred in investigating and responding to Defendants' unlawful conduct and unfairness. 14. As a proximate result of Defendants willful interference with key corporate management and intentional collection and illicit seizure of Plaintiffs private property and confidential files, the improper maintenance and security thereof, certain confidential and proprietary data as contained therein was released without prior written consent or knowledge of Plaintiffs to other agencies or instrumentalities of Defendant Government and later misrepresented to the public and mass media by individuals in the employ of the Defendant Government, and named herein as individual Defendants and tortfeasors whereby causing Plaintiffs public embarrassment, loss of reputation, inconvenience, emotional distress and mental anguish, which as a consequence thereof provided vicarious cause for the termination and ceasing of private and state contracts, together with commercial activities involving the Plaintiffs.

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WHEREFORE, Plaintiffs demand a judgement against Defendants jointly and severally, for loss of property, future opportunity and non-pecuniary injury damages in excess of $ 1,200,000,000.00 plus pre-judgement interest, post-judgement interest, costs, attorneys' fees and such other relief as this Court deems just and proper. Respectfully submitted. Dated 25 September, 2000, South Bend, Indiana

Robert Kap 333 Tonti Street, South Bend, Indiana, 46617 USA Agent for the Plaintiffs

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