CombiMatrix Executes Final Settlement Ending Litigation
April 28 2015 - 8:00AM
CombiMatrix Corporation (Nasdaq:CBMX), a molecular diagnostics
company specializing in DNA-based testing services for
pre-implantation genetic screening (PGS), pre- and postnatal
developmental disorders, today announced the execution of a
Settlement Agreement (the "Agreement") with the Plaintiff Michael
Strathmann regarding his complaint filed with the Superior Court of
the State of California for the County of Orange (the "Court").
Pursuant to the Agreement, Plaintiff relinquishes the right to
further litigate his complaint. In return, CombiMatrix relinquishes
its right to recover certain court costs and to pursue
reimbursement of court and legal fees from Plaintiff.
On March 6, 2015, the Court issued its final Statement of
Decision in the matter of the People of the State of California and
Relator Michael Strathmann ("Plaintiff") vs. Acacia Research
Corporation, CombiMatrix Corporation and Amit Kumar ("Defendants"),
and entered Judgment thereon dismissing Plaintiff's complaint with
prejudice. In its final Statement of Decision, the Court
determined that it could not find that the Defendants had any
fraudulent intent when they pursued insurance benefits under the
National Union D&O Policy over a decade ago. Thereafter,
Plaintiff filed a motion to vacate the Court's Judgment and a
motion to seek a new trial. Also, the Plaintiff had the option
to appeal the Court's Judgment. Pursuant to the Agreement,
Plaintiff has withdrawn his motion to vacate the Court's Judgment
and his motion to seek a new trial, with prejudice, and has
relinquished any right to appeal the Judgment.
"We are gratified both that the Court agreed with our position
of no wrong doing and that the Plaintiff decided to come to an
agreement with us to end this litigation now, as well as preclude
any possibility of the Plaintiff resuming future litigation
regarding this matter," said Mark McDonough, President and Chief
Executive Officer of CombiMatrix. "I am incredibly pleased with how
our commercial team remained focused on our growth plan throughout
the litigation and that we can now focus all of our resources to
growing our business going forward."
About CombiMatrix Corporation
CombiMatrix Corporation provides valuable molecular diagnostic
solutions and comprehensive clinical support to foster the highest
quality in patient care. CombiMatrix specializes in
pre-implantation genetic screening (PGS), prenatal diagnosis,
miscarriage analysis, and pediatric genetics, offering DNA‑based
testing for the detection of genetic abnormalities beyond what can
be identified through traditional methodologies. CombiMatrix
performs genetic testing utilizing a variety of advanced
cytogenomic techniques, including chromosomal microarray,
standardized and customized fluorescence in situ hybridization
("FISH") and high-resolution karyotyping. CombiMatrix is dedicated
to providing high-level clinical support for healthcare
professionals in order to help them incorporate the results of
complex genetic testing into patient-centered medical decision
making. Additional information about CombiMatrix is available at
www.combimatrix.com or by calling 1-800-710-0624.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based upon our current expectations, speak only as of the date
hereof and are subject to change. All statements, other than
statements of historical fact included in this press release, are
forward-looking statements. Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "plans," "goal," "predicts," "believes," "seeks,"
"estimates," "may," "will," "should," "would," "could,"
"potential," "continue," "ongoing," "objective," similar
expressions, and variations or negatives of these words. These
forward-looking statements are not guarantees of future results and
are subject to risks, uncertainties and assumptions that could
cause our actual results to differ materially and adversely from
those expressed in any forward-looking statement. The risks
and uncertainties referred to above include, but are not limited
to: the risk of future litigation; market acceptance of CMA as
a preferred method over karyotyping; the rate of transition to CMA
from karyotyping; our ability to successfully expand the base of
our customers and strategic partners, add to the menu of our
diagnostic tests in both of our primary markets, develop and
introduce new tests and related reports, optimize the
reimbursements received for our testing services, and increase
operating margins by improving overall productivity and expanding
sales volumes; our ability to successfully accelerate sales, allow
access to samples earlier in the testing continuum, steadily
increase the size of our customer rosters in both developmental
medicine and oncology; our ability to attract and retain a
qualified sales force; rapid technological change in our markets;
changes in demand for our future products; legislative, regulatory
and competitive developments; general economic conditions; and
various other factors. Further information on potential
factors that could affect our financial results is included in our
Annual Report on Form 10-K, Quarterly Reports of Form 10-Q, and in
other filings with the Securities and Exchange Commission. We
undertake no obligation to revise or update publicly any
forward-looking statements for any reason, except as required by
law.
CONTACT: Company Contact:
Mark McDonough
President & CEO, CombiMatrix Corporation
(949) 753-0624
Investor Contact:
Robert Flamm, Ph.D.
Russo Partners, LLC
(212) 845-4226
robert.flamm@russopartnersllc.com
Media Contact:
David Schull or Lena Evans
Russo Partners LLC
(212) 845-4271
david.schull@russopartnersllc.com
lena.evans@russopartnersllc.com
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