CryoLife Reports Settlement of Cases
October 29 2004 - 6:20PM
PR Newswire (US)
CryoLife Reports Settlement of Cases ATLANTA, Oct. 29
/PRNewswire-FirstCall/ -- CryoLife, Inc. (NYSE:CRY), a biomaterials
and biosurgical device company, today reported that on Monday,
October 25, 2004, it agreed to a binding settlement of three
general liability lawsuits pending in the Multnomah Circuit Court
in Oregon. Additionally, the Company settled one product liability
case and two product liability claims since June 30, 2004. As a
result of these settlements and the evaluation of all other
outstanding litigation and claims at September 30, 2004, the
Company has recorded a net increase of $2.4 million to its legal
liability reserves for asserted product liability and similar
claims. This amount will be reflected in the Company's general,
administrative and marketing expenses for the three months ended
September 30, 2004. The Company had cash and cash equivalents of
$11.4 million and marketable securities of $3.8 million at
September 30, 2004. The settlements discussed above require the
Company to pay approximately $3.3 million in the fourth quarter of
2004. These claims were uninsured. The Company will hold a
teleconference call and live web cast at 11:15 a.m. Eastern
Standard Time, Thursday, November 4, 2004, to discuss third quarter
2004 results, followed by a question and answer session hosted by
Steven G. Anderson, CryoLife President and Chief Executive Officer.
To listen to the live teleconference, please dial 973-582-2749 a
few minutes prior to 11:15 a.m. No identification number is
required. A replay of the teleconference will be available November
4 through November 10, and can be accessed by calling (toll free)
877-519-4471 or 973-341-3080. The identification number for the
replay is 5284237. The live webcast can be accessed by going to the
Investor Relations section of the CryoLife website at
http://www.cryolife.com/ . Caution Regarding Forward-Looking
Statements Statements made in this report that look forward in time
or that express management's beliefs, expectations or hopes are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including those regarding
the payment of the settlement amount and its effect on the Company
and its financial statements. These future events may not occur as
and when expected, if at all, and, together with the Company's
business, are subject to various risks and uncertainties. These
risks and uncertainties include that the Company's 2004 revenues
and expenses may not meet its expectations, that the Company's 2004
BioGlue revenues may not meet its expectations, that the demand for
CryoLife preserved tissues may not return to prior levels, that the
Company's general administrative and marketing expenses may not
meet expectations due to higher than expected costs of resolving
existing and future litigation, the possibility that the FDA could
impose additional restrictions on the Company's operations, require
a recall, or prevent the Company from processing and distributing
tissues or manufacturing and distributing other products, that the
Company may not have sufficient borrowing or other capital
availability to fund its business, that pending litigation cannot
be settled on terms acceptable to the Company, that the Company may
not have sufficient resources to pay punitive damages (which are
not covered by insurance) or other liabilities in excess of
available insurance, the possibility of severe decreases in the
Company's revenues and working capital, that to the extent the
Company does not have sufficient resources to pay the claims
against it, it may be forced to cease operations or seek protection
under applicable bankruptcy laws, changes in laws and regulations
applicable to CryoLife and other risk factors detailed in
CryoLife's Securities and Exchange Commission filings, including
CryoLife's Form 10-K filing for the year ended December 31, 2003,
and the Company's other SEC filings. The Company does not undertake
to update its forward-looking statements. For additional
information about the company, visit CryoLife's website:
http://www.cryolife.com/ Contact: Joseph T. Schepers Vice
President, Corporate Communications (770) 419-3355 DATASOURCE:
CryoLife, Inc. CONTACT: Joseph T. Schepers, Vice President,
Corporate Communications of CryoLife, Inc., +1-770-419-3355 Web
site: http://www.cryolife.com/
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