AngioDynamics Awarded $16.5 Million Judgment in Case Against biolitec AG
Published: Oct 04, 2012
On September 28, 2012, the U.S. District Court for the Northern District of New York entered a judgment awarding AngioDynamics $16.5 million in partial damages as a result of biolitec's breach of a binding agreement.
The Court's ruling stems from legal action initiated by AngioDynamics in January 2008 seeking to enforce the defense and indemnification provisions of its April 1, 2002, Supply and Distribution Agreement with biolitec. The Agreement obligated biolitec to defend and indemnify AngioDynamics against patent infringement claims by third parties arising out of the use of laser vein ablation products supplied by biolitec. The Court's order affirms biolitec should have defended and indemnified AngioDynamics against claims asserted by Diomed and VNUS Medical Technologies, but did not. The Court's partial judgment awards AngioDynamics the costs of its $7 million settlement with Diomed in April 2008, $6.8 million settlement with VNUS Medical Technologies in June 2008 and legal fees associated with the two cases. The Court also denied biolitec's motions to certify an interlocutory appeal and to reopen discovery.
The September 28, 2012, court action follows the Court's September 27, 2011, action granting key portions of AngioDynamics motion for summary judgment in the case.
In a separate legal proceeding, AngioDynamics is pursuing an action in the United States District Court for the District of Massachusetts against biolitec AG (BIB.DE), Biomed Technology Holdings Ltd., and Wolfgang Neuberger to recover against biolitec AG and its CEO for tortiously interfering with biolitec Inc.'s contractual obligations, to pierce biolitec Inc.'s corporate veil, and to invalidate certain alleged fraudulent transfers between biolitec Inc. and related corporate entities On September 13, 2012, the Massachusetts Court granted AngioDynamics' request for a preliminary injunction prohibiting the defendants from alienating or transferring assets, other than in the ordinary course of business, for the duration of the litigation.
AngioDynamics Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, surgery, peripheral vascular disease and oncology. AngioDynamics' diverse product lines include market-leading ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products. More information is available at www.AngioDynamics.com.
AngioDynamics and the AngioDynamics logo are trademarks and/or registered trademarks of AngioDynamics Inc., an affiliate or a subsidiary.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics' expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the ability of AngioDynamics to develop its existing and new products, technological advances and patents attained by competitors, future actions by the FDA or other regulatory agencies, domestic and foreign health care reforms and government regulations, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, the effects of economic, credit and capital market conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate purchased businesses, including Navilyst Medical and its products, R&D capabilities, infrastructure and employees as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2012. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.
D. Joseph Gersuk, CFO
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