ZimCal’s Cease-and-Desist Letter Demands Medallion Financial Correct Its False and Misleading Statements

ZimCal issued a cease-and-desist letter to Medallion Financial Corp. demanding correction of recent false and misleading statements. ZimCal alleges that in a transparent attempt to gain an unfair advantage in the proxy contest and harm ZimCal, Medallion Financial included false and defamatory statements in its solicitation material concerning discussions between ZimCal and Medallion about the possibility of Medallion purchasing preferred trust securities from ZimCal. ZimCal states those statements, which Medallion knew to be false and misleading when it filed the solicitation material, violate Section 14(a) of the Securities Exchange Act and constitute defamation under applicable state law.