ATLANTA, April 13 /PRNewswire-FirstCall/ -- CryoLife,
Inc. (NYSE: CRY), an implantable biological medical device and
cardiovascular tissue processing company, announced today that the
lawsuit filed by Medafor, Inc. against Steven G. Anderson, CryoLife's chairman,
president and chief executive officer, in November 2009 was settled. The matter was
mediated on April 6, 2010, with
Myron S. Greenberg serving as
mediator. The settlement does not require that Mr. Anderson
make any payments to Medafor, give Medafor any of the relief that
Medafor demanded of Mr. Anderson when it sued him or make any
payments to any party to the lawsuit including Medafor's CEO and
CFO. It does require that Medafor honor the legitimate
business transaction by which Mr. Anderson purchased the
shares.
"I am pleased to have settled the lawsuit and finally have the
1,000 Medafor shares registered in my name," said Steven G. Anderson, CryoLife's chairman,
president and chief executive officer. "CryoLife remains
Medafor's largest distributor and shareholder, and we continue to
explore all of the options available to us to protect the value of
our investment."
In November 2009, Medafor, Inc.
filed a lawsuit against Mr. Anderson and Mr. Richard Zerban, the former CEO of Medafor,
regarding Mr. Zerban's sale to Mr. Anderson of 1,000 shares of
Medafor stock (the "Transaction"). Mr. Anderson asserted a
counterclaim against Medafor and third party claims against Mr.
Gary Shope, Medafor's CEO, and Mr.
Gavin Thomson, Medafor's CFO, in the
lawsuit regarding the Transaction.
Medafor has agreed to dismiss with prejudice all of its claims
against Mr. Anderson and Mr. Zerban in the Lawsuit and has agreed
to register the 1,000 shares in Mr. Anderson's name effective as of
May 13, 2009. Medafor also
retracts the allegations it has made on its website and elsewhere
that the Transaction was wrongful.
Mr. Anderson, in turn, has agreed to dismiss with prejudice all
of his counterclaims against Medafor and all of his third-party
claims against Mr. Shope and Mr. Thomson.
As part of the dismissal, both parties withdraw the allegations
they have made against one another in the Lawsuit. No party admits
or acknowledges liability or wrongdoing in this matter. The Lawsuit
was settled to the Parties' mutual satisfaction.
CryoLife was not a party to the lawsuit.
About CryoLife, Inc.
Founded in 1984, CryoLife, Inc. is a leader in the processing
and distribution of implantable living human tissues for use in
cardiac and vascular surgeries throughout the U.S. and Canada. The Company's CryoValve® SG
pulmonary heart valve, processed using CryoLife's proprietary
SynerGraft® technology, has FDA 510(k) clearance for the
replacement of diseased, damaged, malformed, or malfunctioning
native or prosthetic pulmonary valves. The Company's
CryoPatch® SG pulmonary cardiac patch has FDA 510(k) clearance for
the repair or reconstruction of the right ventricular outflow tract
(RVOT), which is a surgery commonly performed in children with
congenital heart defects, such as Tetralogy of Fallot, Truncus
Arteriosus, and Pulmonary Atresia. CryoPatch SG is
distributed in three anatomic configurations: pulmonary
hemi-artery, pulmonary trunk, and pulmonary branch. The
Company's BioGlue® Surgical Adhesive is FDA approved as an adjunct
to sutures and staples for use in adult patients in open surgical
repair of large vessels. BioGlue is also CE marked in the
European Community and approved in Canada and Australia for use in soft tissue repair.
The Company's BioFoam™ Surgical Matrix is CE marked in
the European Community for use as an adjunct in the sealing of
abdominal parenchymal tissues (liver and spleen) when cessation of
bleeding by ligature or other conventional methods is ineffective
or impractical. BIOGLUE Aesthetic® Medical Adhesive is
CE marked in the European Community for periosteal fixation
following endoscopic browplasty (brow lift) in reconstructive
plastic surgery and is distributed by a third party for this
indication. CryoLife distributes HemoStase, a hemostatic
agent, in much of the U.S. for use in cardiac and vascular surgery
and in many international markets for cardiac, vascular, and
general surgery, subject to certain exclusions.
For additional information about the company, visit CryoLife's
Web site:
www.cryolife.com.
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Media
Contacts:
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D. Ashley
Lee
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Executive Vice
President, Chief Financial Officer and
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Chief Operating
Officer
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Phone:
770-419-3355
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Nina
Devlin
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Edelman
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Phone:
212-704-8145
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SOURCE CryoLife, Inc.