BOCA RATON, Fla., Feb. 2, 2015 /PRNewswire/ -- Medtel24, Inc.
announced today that it filed a Demand for Arbitration with the
American Arbitration Association against Biotelemetry, Inc. (f/k/a
Cardionet, LLC/Inc.) (NASDAQ: BEAT) and several of its subsidiaries
or affiliates. The Demand asserts several breach of a
contract claims and related common law claims.
In 2011, Medtel24 contracted with Mednet/UMI for the supply of
certain remote cardiac monitoring devices. In 2013,
Mednet/UMI transferred joint ownership of the software identified
in that agreement to Medtel24. In 2012, Biotelemetry (then
Cardionet, LLC) filed a patent infringement case in Federal Court
in Pennsylvania against Mednet/UMI
and Medtel24 (and others). The case was "settled" between
Biotelemetry (then Cardionet, Inc.) and Mednet/UMI on or before
January 31 2014, the same day
Biotelemetry announced its acquisition of Mednet/UMI.
Mednet/UMI admitted patent infringement in a January 31, 2014 Consent Judgment Order that
Medtel24 contested last Friday in the same Court in Pennsylvania.
As a result of the acquisition, Biotelemetry assumed the
liabilities and obligations under the 2011 agreement, as
amended. Medtel24 believes Biotelemetry breached the
agreement by, among other things, failing to continue to honor its
indemnification obligations, disparaging Medtel24, misusing
confidential information, and failing to provide proper copies of
Medtel24's jointly-owned software. In its Demand, Medtel24
also asserts related common law torts including, among other
things, unfair competition, intentional interference with economic
advantages/contract, false light, lack of good faith and fair
dealing, and unfair and deceptive trade practices. In the
Pennsylvania Federal Court challenge, Medtel24 contests the Consent
Judgment Order on grounds of malicious motives, failure to
disclose, and leaving Medtel24 without counsel for trial, so that
Biotelemetry could complete its acquisition and avoid, ignore, or
recklessly disregard the indemnification obligations it was
assuming (among other grounds).
MedTel24 expects the monetary components of its arbitration
claims to be in the range of millions of U.S. Dollars by the time
the proceeding is over.
About Medtel24, Inc.
Medtel24 is a privately held remote cardiac monitoring company
based in Boca Raton, Florida.
Medtel24 provides a monitoring center, using its proprietary
software, for doctors (and their patients) who previously acquired
cardiac event and/or telemetry medical devices (i.e., monitors and
communicators). Medtel24 is no longer able to offer or sell
cardiac telemetry devices that would otherwise be supplied by
Biotelemetry under the above-referenced agreement. Medtel24
is dedicated to its doctors and their patients who use these
previously-acquired devices, as well as all of the event monitoring
devices Medtel24 still offers.
For further information contact: Lee
Sanders, President (lee@medtel24.com) or by phone
561-208-0708.
Caution regarding forward looking statements
This news release contains certain forward-looking statements
regarding Medtel24's expectation of future events, including
potential claims and legal proceedings. These expectations
are based on certain assumptions based on currently available
information. If these assumptions prove incorrect, actual results
may differ materially from those contemplated here, since numerous
factors beyond our control impact claims and legal proceedings. The
Company disclaims any intention or obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by
securities laws.
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SOURCE Medtel24, Inc.