Martek Biosciences Corporation Receives Favorable Decision On Motion For Summary Judgment In OmegaTech Milestone Dispute
COLUMBIA, Md., April 26 /PRNewswire-FirstCall/ -- Martek Biosciences Corporation announced today that the United States District Court for the District of Maryland has ruled in Martek's favor in a motion for summary judgment filed by Martek on March 10, 2006. In its decision, the Court agreed with Martek's position that a performance milestone relating to a nutrient content claim provided for in the 2002 merger agreement between Martek and OmegaTech, Inc., had not been met and concluded that Martek is therefore not required to issue up to approximately 670,000 shares of its common stock to the former shareholders and other interest holders of OmegaTech, Inc., under the milestone provision.
As a result of the granting of Martek's motion, the Court has ordered that the case, which began with Martek's filing of a declaratory judgment action in October 2004, be closed. The defendant in the suit, the representative of the former interest holders of OmegaTech, has the right to appeal the decision until May 24, 2006.
Martek Biosciences Corporation is a leader in the innovation and development of omega-3 DHA products that promote health and wellness through every stage of life. The Company produces Martek DHA(TM), a vegetarian source of the omega-3 fatty acid DHA (docosahexaenoic acid), for use in foods, infant formula, and supplements, and ARA (arachidonic acid), an omega-6 fatty acid, for use in infant formula. For more information on Martek Biosciences, visit http://www.martek.com.
Sections of this release contain forward-looking statements concerning, among other things, expectations regarding legal proceedings. These statements are based upon numerous assumptions which Martek cannot control and involve risks and uncertainties that could cause actual results to differ. These statements should be understood in light of the risk factors set forth in the Company's filings with the Securities and Exchange Commission, including, but not limited to, Part I, Item 1A to the Company's Form 10-K/A for the fiscal year ended October 31, 2005 and other filed reports on Form 10- K, Form 10-Q and Form 8-K.
CONTACT: Kyle Stults, Investor Relations of Martek Biosciences Corporation, +1-410-740-0081.Martek Biosciences Corporation
CONTACT: Kyle Stults, Investor Relations of Martek BiosciencesCorporation, +1-410-740-0081
Web site: http://www.martek.com/