Re: 2/14/01 - [IMDS] Imaging Diagnostic Cybersmear Lawsuit Update
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On May 1, 2000, we filed a civil lawsuit against DOE 1 a/k/a DEIGHTON and DOE 2 a/k/a docpatel in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida, Case No. CACE 00-006881 (04) for defamation and tortious interference with our contracts and business relationships. A Final Judgment of Permanent Injunction against defendant Steven Cortopassi a/k/a "docpatel" was ordered by the Court on July 12, 2000. This injunction permanently enjoins and restrains Mr. Cortopassi from posting any messages whatsoever concerning IDSI, Richard Grable and Linda Grable on The Raging Bull or any other Internet bulletin/message board and permanently enjoins and restrains Mr. Cortopassi from publishing any false or defamatory statements concerning IDSI, and its officers, directors and employees. Mr. Cortopassi is also permanently enjoined and restrained from interfering with any contractual business relationship by and between IDSI, Richard Grable, Linda Grable and/or IDSI employees, customers, etc.
The civil lawsuit filed against Doe 1 a/k/a DEIGHTON is still pending and seeks permanent relief which would restrain Doe 1 and his/her agents, etc. from making any statement or engaging in any conduct to intentionally interfere with any contractual/business relationship by and between IDSI, Richard Grable and Linda Grable and our customers, shareholders and/or investors, and for damages, attorney fees, costs and interest in excess of $15,000.00. A Summons and Verified Complaint was served on the Doe 1 and a Response was filed by Diane M. Strait, a former employee of the company. The defendant, Ms. Strait has admitted to being the author, with her husband, Robert Leonard of over 1,000 postings on the Raging Bull message boards regarding us. Our motion for a temporary injunction was denied on November 3, 2000. We are currently conducting discovery in this case and intend to seek a permanent injunction. On December 18, 2000, we served an amended complaint which added Mr. Leonard as a defendant in the lawsuit. Diane Strait has filed a counterclaim for defamation against us. We have filed a motion to dismiss this counterclaim for failure to state cause of action. We believe that this counterclaim is without merit, frivolous and an abuse of process. We intend to vigorously prosecute this action and prevent the further dissemination of flagrantly false information.
On June 16, 2000 we filed a motion for the issuance of an Interlocutory and Permanent Injunction against David J. Hall, Ph.D. (a former employee) and ART Advanced Research Technologies Inc. (his current employer) in the Superior Court of the Province of Quebec, District of Montreal, Case No. 500-05-058294-008 seeking to enjoin Dr. Hall not to use or divulge trade secrets or other confidential information to ART and to enjoin Dr. Hall from breaching his duty of loyalty and contractual obligation of confidentiality and non-competition. Both Dr. David Hall and ART have sworn that Dr. Hall has not divulged or used and will not divulge or use any confidential information which he has obtained from us. A Desistment has been filed with the court on January 16, 2001 which essentially is a discontinuance of the claim, unless it is revealed that Dr. Hall has actually disclosed confidential information.
We were served with a lawsuit in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida, Case No. 00-19919 on November 22, 2000, by Irving Schwab, et.al. for allegedly breaching a promissory note by and between the Company and Cycle of Life, dated January 27, 2000. All parties entered into voluntary mediation and a mutually agreeable settlement ensued. On January 22, 2001 the Court entered an Order approving the Stipulation for Settlement and Dismissal with Prejudice. (See "Liquidity and Capital Resources").
We were served with a lawsuit in the Circuit Court for Cook County, Illinois, First Municipal Department on December 12, 2000, by Andrew A. Skolnick for alleged defamation and civil conspiracy to defame and damage the Plaintiff's reputation. We believe this lawsuit is without merit and intend to vigorously defend this action. We have filed a motion to dismiss based upon lack of jurisdiction.
We are not aware of any other material legal proceedings, pending or contemplated, to which we are, or would be a party to or of which any of our property is, or would be, the subject.
[IMAGING DIAGNOSTIC SYSTEMS INC /FL/, filed this 10QSB on 02/14/2001.]
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