Comdex exhibitor sues to block distribution of leaflets

Friday, Nov. 10, 2000 | 10:49 a.m.

A Comdex exhibitor sued to stop a man from distributing at the Las Vegas trade show 25,000 allegedly defamatory leaflets that allegedly claim the company is involved in what the man calls the "largest Internet-based securities fraud" to date.

In a Clark County District Court lawsuit, Argoquest Inc. of Los Angeles and its founder Jason Barzilay sued Will Knedlik of Kirkland, Wash., alleging he is trying to destroy Argoquest by threatening to transmit false accusations that the plaintiffs conspired with a third party, Matchnet PLC of Beverly Hills, to bilk investors out of more than $25 million.

Argoquest and Barzilay alleged they aren't involved in an ongoing out-of-state legal dispute between Knedlik, a trustee for his son's educational trust, and Matchnet, an online dating service website operator.

Knedlik denied the allegations. "We were provided a copy of a sworn affidavit by Argoquest's attorney indicating Barzilay and Argoquest are major shareholders in the development of Matchnet. We've identified at least 35 Internet listings on the lycos.com search engine indicating Argoquest's involvement with Matchnet."

"My son's trust owns one-third or 20,000 shares of two major Internet dating websites, Americansingles.com and Cupidnet.com, which were sold over my objection to Matchnet," he said. "I've been suing Matchnet to get them to pay $16 million for the 20,000 shares."

Knedlik said he's not sure if he'll be able to distribute the leaflets because of the lawsuit.