iBio Provides Status Update on its Continuing Litigation Against Fraunhofer
December 14 2018 - 8:00AM
iBio, Inc. (NYSE AMERICAN:IBIO), a developer and manufacturer of
biotherapeutics, announced today that the Second Complaint it filed
in iBio’s litigation against the Fraunhofer organization – this
time against Fraunhofer Gesellschaft (“FhG”), complaining that FhG
had committed fraud against and was responsible for contractual
breaches against iBio – was dismissed by the Delaware Chancery
Court as untimely filed.
The original Complaint filed against Fraunhofer
USA, Inc. (“FUSA”) on March 16, 2015, complained of breaches of
contracts and misappropriation of iBio trade secrets and other
intellectual property causing damages to iBio in excess of $100
million. The Chancery Court, sua sponte, initiated a partial
Summary Judgment proceeding and determined that iBio exclusively
owns all the technology FUSA developed or otherwise owned anytime
before the end of 2014, and was required to transfer all such
technology to iBio, but refused to do so. Proceedings under
the original Complaint are continuing and are expected to lead to a
trial date within the next 12-18 months. The dismissal of the
Second Complaint against FhG has no effect on the action against
FUSA.
In considering the Second Complaint against FhG,
the Court first treated FhG’s claim that the Court lacked personal
jurisdiction over FhG. The Court rejected FhG’s claim and
went on to decide that iBio had satisfied the five-element test
adopted by the Supreme Court of Delaware in Instituto Bancario
Italiano SpA v. Hunter Engineering Co. that requires at least a
prima facie showing that (1) a conspiracy to defraud existed; (2)
the defendant was a member of that conspiracy; (3) a substantial
act or substantial effect in furtherance of the conspiracy occurred
in Delaware; (4) the defendant knew or had reason to know of the
act in the forum state or that acts outside the forum state would
have an effect in the forum state; and (5) the act in, or effect
on, the forum state was a direct and foreseeable result of the
conduct in furtherance of the conspiracy. Accordingly, the
Court decided it had personal jurisdiction over FhG.
iBio filed the Second Complaint against FhG only
after it appeared that FhG, while acting with and controlling FUSA,
refused to be responsible for FUSA’s liabilities and
obligations. However, the Court determined that the Complaint
against FhG should have been filed earlier to comply with Delaware
precedent, a finding with which iBio disagrees.
Although iBio’s damage claims in the continuing
FUSA litigation substantially exceed the total net value of FUSA,
iBio believes it will be impossible for FhG to avoid ultimate
responsibility for any unsatisfied judgment against FUSA without
abandoning all activities in the United States and other parts of
the world, and violating its own stated Prinzip Verantwortung
(Principle of Responsibility) and Internal Code of
Conduct.
About iBio, Inc.
iBio, a leader in developing plant-based
biopharmaceuticals, provides a range of product and process
development, analytical, and manufacturing services at the
large-scale development and manufacturing facility of its
subsidiary iBio CDMO, LLC in Bryan, Texas. The facility
houses laboratory and pilot-scale operations, as well as
large-scale automated hydroponic systems capable of growing over
four million plants as "in process inventory" and delivering over
300 kilograms of therapeutic protein pharmaceutical active
ingredient per year. For more information please visit
www.ibioinc.com.
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COMMISSION.
Contact:
Stephen KilmerInvestor Relations(646) 274-3580
skilmer@ibioinc.com
Source: iBio, Inc.
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