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DATATRAK Uncovers Smoking Gun Evidence Tying Alex Tabatabai to Serious Misconduct

CLEVELAND, Dec. 29, 2015 /PRNewswire/ -- DATATRAK International, Inc. (OTCQX: DTRK), the leader in developing cloud-based, unified dClinical technologies and delivering related services for the clinical trials industry, today announced that the 2015 Annual Meeting of Shareholders has been postponed and will now take place at 10:00 am CT on Friday, January 8, 2015 at the Prudential Plaza Building, 180 North Stetson, Suite 1630, Chicago, IL 60601.


  • Arosa/Mr. Tabatabai has been directly linked to a smear campaign against DATATRAK and the distribution of personal information with malicious intent carried out against DATATRAK executives.
  • Arosa/Mr. Tabatabai has persistently mischaracterized its intentions and misled DATATRAK shareholders while concealing its now apparent role in the malicious smear campaign.
  • The Company is also concerned that key employees and customers will leave the Company if the dissidents join the Board of Directors; the Company believes that confirmation of Tabatabai's malicious activities will render the dissident group unable to lead the remaining employees or cultivate relationships with blue-chip customers who would recoil at the confirmed actions undertaken by Tabatabai.
  • We understand from shareholders that Tabatabai has been vehemently denying his involvement in these activities and the company's claims in the litigation. Not only was the original behavior completely inappropriate, but more concerning, if Tabatabai is lying to shareholders about his involvement in these activities, what does this say about his integrity and the ability of shareholders to trust his word going forward.
  • It is the fiduciary responsibility of the Company to act in the best interest of ALL shareholders, and as a result, DATATRAK believes that shareholders need this short additional time to process this new information before voting. This activity is so egregious, that we believe it would form the basis for a removal election for cause of Tabatabai if he were already on the Board.
  • The short and necessary postponement of the Annual Meeting is a direct result of this new information regarding Arosa/Mr. Tabatabai's distribution of personal documents and other malicious activity regarding DATATRAK executives that has occurred over the past few months. It is critical that we give shareholders the opportunity to exercise their franchise with all material information available about the candidates.
  • DATATRAK will continue to aggressively pursue legal action to address these concerns and ensure a transparent and fair vote occurs.

Chairman and CEO, Laurence P. Birch stated, "This recent development further demonstrates the dissident's interests are not aligned with those of our shareholders.  The end-game of the smear campaign was to fracture a shareholder base in an attempt to gain control of DATATRAK, with complete disregard for the damage caused with customers and all other DATATRAK stakeholders.  I urge all shareholders to reconsider their votes now that there is evidence linking the dissident to this smear campaign, which resulted in irrefutable damage to the Company, and, as such, all shareholder's investments in DATATRAK.  It is the Company's responsibility to ensure that the shareholders possess all relevant information pertaining to the Company and the dissident to ensure a fair vote takes place and we will continue to protect the interests of ALL shareholders, regardless of their stance on proxy voting matters."

Previous alleged information regarding the malicious activity of Arosa/Mr. Tabatabai has been confirmed.

  • JUST THIS AFTERNOON, legal advisors received information obtained through a subpoena of the Yahoo! user account affiliated with the malicious activity, including the distribution of personal court documents via Scribd and other internet forums. The phone number linked to the Yahoo account, when cross-referenced with public records, is linked directly to Mr. Tabatabai.
  • The subpoena and the subsequent information proves that the malicious activities carried out by the dissident are real, despite the dissident's claims to the contrary.
  • Given the timing of this development in relation to the Company's Annual Meeting, the Company has decided to postpone the Annual Meeting to ensure that all shareholders are adequately briefed on the allegations and new evidence against the dissident before voting.

We urge shareholders to seriously reconsider if the dissident has the shareholders' best interests in mind.

  • Arosa's campaign has and will continue to destroy shareholder value, as has been apparent throughout the proxy battle and the spreading of personal documents and mischaracterizations about the Company and its executives.
  • Despite the dissident's claims to the contrary, there is now evidence directly linking the dissident to the spread of personal court documents to shareholders and customers of DATATRAK. This new information regarding this malicious activity is in complete contrast to the dissident's self-proclaimed position of integrity.
  • Now, more than ever, shareholders are asked to elect directors whom you believe are most qualified and trustworthy to oversee DATATRAK's strategy and operations.

Note: permission to use quotations was neither sought nor obtained.

If you have any questions or need assistance in voting your WHITE PROXY CARD, please contact Morrow & Co., our proxy solicitor, toll-free at 800-662-5200, or via E-mail at

DATATRAK is a worldwide technology and consulting Company delivering digital clinical solutions and related services for the clinical trials industry. The Company delivers a portfolio of software solutions through the unified dClinical platform, safely accelerating clinical research, from Concept to Cure®.


DATATRAK International is a worldwide technology and services Company delivering Unified dClinical solutions and related services for the clinical trials industry. DATATRAK built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via DATATRAK's Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The DATATRAK ONE® software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Phase I – Phase IV drug and device studies in multiple languages throughout the world. DATATRAK has offices located in Chicago, IL; Cary Research Triangle Park (RTP), North Carolina; Bryan, Texas; and Cleveland, Ohio. For more information, visit

Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's report filed with the OTCQX Market on March 13, 2015 announcing its results for the full year period ended December 31, 2014. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.


SOURCE DATATRAK International, Inc.
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