ADL » Topics » Litigation

These excerpts taken from the ADL 10-K filed Apr 15, 2009.
Litigation
 
On February 22, 2002, AcuVector Group, Inc. (“AcuVector”) filed a Statement of Claim in the Court of Queen’s Bench of Alberta, Judicial District of Edmonton relating to the Company’s CIT technology acquired from Dr. Chang in August 2001. The claim alleges damages of $CDN 20 million and seeks injunctive relief against Dr. Chang for, among other things, breach of contract and breach of fiduciary duty, and against us for interference with the alleged relationship between Dr. Chang and AcuVector. The claim for injunctive relief seeks to establish that the AcuVector license agreement with Dr. Chang is still in effect. The Company performed extensive due diligence to determine that AcuVector had no interest in the technology when the Company acquired it. The Company is confident that AcuVector’s claims are without merit and that the Company will receive a favorable result in the case. As the final outcome is not determinable, no accrual or loss relating to this action is reflected in the accompanying consolidated financial statements.
 
The Company is also defending a companion case filed in the same court by the Governors of the University of Alberta filed against the Company and Dr. Chang in August 2003. The University of Alberta claims, among other things, that Dr. Chang failed to remit the payment of the University’s portion of the monies paid by the Company to Dr. Chang for the CIT technology purchased by us from Dr. Chang in 2001. In addition to other claims against Dr. Chang relating to other technologies developed by him while at the University, the University also claims that the Company conspired with Dr. Chang and interfered with the University’s contractual relations under certain agreements with Dr. Chang, thereby damaging the University in an amount which is unknown to the University at this time. The University has not claimed that the Company is not the owner of the CIT technology, just that the University has an equitable interest therein or the revenues there from.
 
If either AcuVector or the University is successful in their claims, the Company may be liable for substantial damages, its rights to the technology will be adversely affected (see Note 5) and its future prospects for exploiting or licensing the CIT technology will be significantly impaired.
 
In the ordinary course of business, there are other potential claims and lawsuits brought by or against the Company. In the opinion of management, the ultimate outcome of these matters will not materially affect the Company’s operations or financial position or are covered by insurance.
 
Litigation


 



On February 22, 2002, AcuVector Group, Inc.
(“AcuVector”) filed a Statement of Claim in the Court
of Queen’s Bench of Alberta, Judicial District of Edmonton
relating to the Company’s CIT technology acquired from
Dr. Chang in August 2001. The claim alleges damages of $CDN
20 million and seeks injunctive relief against
Dr. Chang for, among other things, breach of contract and
breach of fiduciary duty, and against us for interference with
the alleged relationship between Dr. Chang and AcuVector.
The claim for injunctive relief seeks to establish that the
AcuVector license agreement with Dr. Chang is still in
effect. The Company performed extensive due diligence to
determine that AcuVector had no interest in the technology when
the Company acquired it. The Company is confident that
AcuVector’s claims are without merit and that the Company
will receive a favorable result in the case. As the final
outcome is not determinable, no accrual or loss relating to this
action is reflected in the accompanying consolidated financial
statements.


 



The Company is also defending a companion case filed in the same
court by the Governors of the University of Alberta filed
against the Company and Dr. Chang in August 2003. The
University of Alberta claims, among other things, that
Dr. Chang failed to remit the payment of the
University’s portion of the monies paid by the Company to
Dr. Chang for the CIT technology purchased by us from
Dr. Chang in 2001. In addition to other claims against
Dr. Chang relating to other technologies developed by him
while at the University, the University also claims that the
Company conspired with Dr. Chang and interfered with the
University’s contractual relations under certain agreements
with Dr. Chang, thereby damaging the University in an
amount which is unknown to the University at this time. The
University has not claimed that the Company is not the owner of
the CIT technology, just that the University has an equitable
interest therein or the revenues there from.


 



If either AcuVector or the University is successful in their
claims, the Company may be liable for substantial damages, its
rights to the technology will be adversely affected (see
Note 5) and its future prospects for exploiting or
licensing the CIT technology will be significantly impaired.


 



In the ordinary course of business, there are other potential
claims and lawsuits brought by or against the Company. In the
opinion of management, the ultimate outcome of these matters
will not materially affect the Company’s operations or
financial position or are covered by insurance.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Apr 15, 2009
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