Zefiro Founder Announces Partial Dismissal of New York Litigation and Comments on Annual Meeting Results
TORONTO, March 27, 2026 (GLOBE NEWSWIRE) -- Dr. Talal A. Debs, Founder of Zefiro Methane Corp. (Cboe: ZEFI) ("Zefiro" or the “Company”), is pleased to announce that his motion to dismiss of a New York civil case (the “NY Litigation”) brought by David McGrath against Dr. Debs, X Machina Capital Strategies Fund I GP LLC (“XMC”), and X Machina Capital Strategies LP (“XMST”) was granted in part. In a decision delivered March 19, 2026, a New York court dismissed multiple allegations included in the NY Litigation. Dr. Debs is confident he and XMC will prevail with respect to the remaining counts.
The NY Litigation was used by Zefiro’s board of directors (the “Board”) as a pretext for a frivolous investigation into Dr. Debs which was launched at considerable expense to shareholders. The Board then repeatedly cited the existence of the investigation to discredit Dr. Debs in his bid to elect a slate of directors at the Company’s annual general and special meeting of shareholders which was held on March 20, 2026 (the “Meeting”).
Mr. McGrath worked with the Board to entrench the incumbent directors. He also sought unsuccessfully to block XMC’s ability to function and to prevent XMC from voting its Zefiro shares at the Meeting; these attempts were dismissed by a court and securities regulator, respectively.
In separate litigation, Zefiro CEO Catherine Flax has filed a suit against XMC in which she makes additional false claims. Regrettably, the cynical nature of the McGrath and Flax actions has necessitated XMC filing suit against them in Florida for various matters, including tortious interference, civil conspiracy and defamation.
Commentary on the future of Zefiro Methane
As announced by the Company, Dr. Debs was unsuccessful in his efforts to elect directors to the Board at the Meeting. Dr. Debs respects the decision Zefiro shareholders made based on the information available to them. Through XMC and XMST, he remains a significant shareholder, and plans to hold the Board and management team to account on decisions affecting the Company.
Dr. Debs commented: “I am grateful to have had the opportunity to contribute to Zefiro as its Founder, CEO and Chairman over the past several years. We have established a solid foundation upon which to build an environmental services leader with exciting growth prospects.
“I believe the proxy campaign raised awareness of important issues in the areas of governance and transparency at Zefiro and will likely lead to improvements going forward. It also played a key role in an improved balance sheet and a higher share price and therefore expanded strategic options. These results have benefited all shareholders including XMC. Furthermore, XMC has retained its right to acquire additional shares representing up to 7.3% of the Company’s outstanding shares pursuant to the terms of the investor rights agreement between Zefiro and XMST. Zefiro remains a significant part of the XMC portfolio as we contin
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Soleno Therapeutics, Inc. (NASDAQ: SLNO) between March 26, 2025 and November 4, 2025, both dates inclusive (the “Class Period”), of the important May 5, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Soleno common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO Next : To join the Soleno class action, go to https://rosenlegal.com/submit-form/?case_id=43959 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 5, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Soleno Phase 3 clinical trial program for diazoxide choline extended-release tablets (“DCCR”) had systematically downplayed, misrepresented, and/or concealed significant evidence of safety concerns potentially related to the administration of DCCR, including issues related to excess fluid retention in clinical trial participants; (2) as a result, the administration of DCCR to treat hyperphagia in individuals with Prader-Willi syndrome (“PWS”) posed materially greater safety risks than disclosed by Soleno or its executives; and (3) as a result, DCCR had materially lower commercial viability and undisclosed risks related to the likelihood of significant and widespread adverse events after its commercial launch, including risks related to patient discontinuation rates, lower patient adoption, prescriber reluctance, adverse regulatory action, and potential reputational and legal fallout. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Soleno class action, go to https://rosenlegal.com/submit-form/?case_id=43959 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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Attorney Advertising. Prior results do not guarantee a similar outcome.
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Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
case@rosenlegal.com
www.rosenlegal.com
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