ENGLEWOOD CLIFFS, N.J., March 27 /PRNewswire-FirstCall/ -- EpiCept Corporation announced today the settlement of a derivative securities lawsuit filed in October 2004 by a shareholder of Maxim Pharmaceuticals against certain of Maxim's former officers and directors. EpiCept completed its merger with Maxim Pharmaceuticals in January 2006. The settlement in the case Putnam v. Stambaugh, et al. was reached in the Superior Court of the State of California, County of San Diego.
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The terms of the settlement call for EpiCept to pay $50,000 in EpiCept common stock to cover the plaintiff's legal expenses. The settlement is subject to customary conditions such as the execution of settlement documents, the final court approval of the settlement and dismissal of the Putnam claims with prejudice.
"We are pleased that we've reached a favorable settlement with the plaintiff," said Jack Talley, CEO of EpiCept. "This represents the first tangible step towards concluding Maxim's litigation that was outstanding at the time we announced our merger with them. While we remain confident in our ability to successfully defend against any claims, we will continue our efforts to resolve the other outstanding securities litigation against Maxim and focus our primary efforts on executing our business plan."
About EpiCept Corporation
EpiCept is an emerging pharmaceutical company focused on unmet needs in the treatment of pain and cancer. The Company has a staged portfolio with several pain therapies in late-stage clinical trials, and a lead oncology compound (for AML) with demonstrated efficacy in a Phase III trial; the compound is intended for commercialization in Europe. EpiCept is headquartered in New Jersey; the Company's R&D team in San Diego is pursuing a drug discovery program focused on novel approaches to apoptosis.
Forward Looking Statements
This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding the proposed transaction, the efficacy, safety, and intended utilization of the Company's respective product candidates, the conduct and results of future clinical trials, and plans regarding regulatory filings, future research and clinical trials and plans regarding partnering activities. Factors that may cause actual results to differ materially include the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, the risk that EpiCept will not obtain approval to market its products, the risks associated with reliance on outside financing to meet capital requirements, and the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. These factors and others are more fully discussed in EpiCept's periodic reports and other filings with the SEC.
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