Xenomics, Inc. Files Suit against Sequenom, Inc. for Fraud
October 29 2009 - 7:30AM
Business Wire
Xenomics, Inc. (Pink Sheets:XNOM.PK)(FWB:XE7) a developer of
trans-renal molecular diagnostic technologies, announced today that
it has filed a complaint against Sequenom, Inc. (Nasdaq: SQNM) in
the Supreme Court of the State of New York alleging that Sequenom
fraudulently misrepresented to Xenomics the status of its testing
for Down Syndrome and based upon such conduct, Xenomics was induced
to enter into a license agreement with Sequenom thereby giving up
various valuable patent rights. In addition, Xenomics is alleging
that Sequenom breached the license agreement entered into between
the parties by fraudulently misrepresenting the status of Sequenom.
Xenomics is seeking money damages together with punitive damages
for Sequenom’s willful fraud in an amount not to exceed
$300,000,000 as well as the termination of the license agreement
between the parties. On September 28, 2009, Sequenom announced that
the Federal Bureau of Investigation and U.S. Attorney’s office were
investigating it with respect to its alleged successful Down
Syndrome test.
About Xenomics, Inc. and TrovaGene, Inc.
The company has focused on the development of DNA and RNA-based
tests using Trans-renal DNA (Tr-DNA) or RNA (Tr-RNA). Its patented
technology uses safe and simple urine collection and can be applied
to a broad range of applications, including tumor detection and
monitoring, infectious disease detection, prenatal testing, tissue
transplantation, genetic testing for forensic identity
determination, drug development, and research to counter
bioterrorism. Its TrovaGene, Inc. subsidiary was formed principally
to provide a mechanism to change the company’s corporate domicile
from Florida to Delaware and the company’s corporate name by
statutory merger. The company’s founding scientists were the first
to report that fragments of DNA from normal cell death cross the
kidney barrier and can be detected in urine. The company believes
that its technology will open significant new markets in the
molecular diagnostics field. The company has been issued three U.S.
patents covering different applications of the technology for
molecular diagnostics and genetic testing and a European patent for
the company's prenatal testing applications, as well as numerous
pending patent applications.
Forward-Looking Statements
Statements about the company's expectations, applications of its
technology, markets, and other statements that are not historical
facts are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 and are based on management's
current beliefs, assumptions, estimates and projections. Actual
results may differ materially from those projected in the
forward-looking statements for various reasons, including risks
associated with product development, government regulation, market
acceptance, dependence on key personnel, obtaining financing and
other factors.