If you are short VISX, please tell us why. I am sure everyone here would like to hear both sides of this story (not just the positive). Listed are some potential concerns below. All responses (bull or shorts) are welcome.
5/14/99 Ct. Okays 17-State Class In Antitrust Suit Vs Visx
FORM 10Q PERIOD ENDED: 03/31/99
SEC RCVD DATE: 05/13/99
ISSUER: VISX INC.
SYMBOL: VISX
WASHINGTON (FFBN) -- On May 12, a California state court
overseeing a consolidated antitrust class action against Visx Inc.
entered a stipulated conditional order certifying that the class will
include patients in 17 states and the District of Columbia.
The suit initially sought certification of a nationwide class
of patients, according to the company's Form 10-Q filed with the
Securities and Exchange Commission on May 13.
In addition, two more lawsuits were filed in May against Visx
over its alleged unfair competition and antitrust violations involving
its laser eye surgery business.
Both suits were filed in Minnesota: one suit purports to
represent a class of patients in several states while the other is on
behalf of Minnesota patients only.
As widely reported, since the Federal Trade Commission launched
a suit against the company challenging the existence of its Pillar Point
Partners joint venture with Summit Technology Inc. (BEAM) and the
enforceability of certain patents, Visx has been hit with a large number
of purported class actions alleging violations of various state and
federal antitrust laws.
Visx settled the FTC complaint last year, agreeing to dissolve
Pillar Point but the consent decree did not address the enforceability
of Visx's patents. An administrative law judge is expected to issue an
initial decision on that issue before the end of May.
Visx's ongoing patent infringement battle with privately-held
Japanese firm Nidek Co. is also heating up. The International Trade
Commission (ITC) has set a trial date of Aug. 18 in its investigation of
Nidek and its United States subsidiaries based on the complaint filed by
Visx in January. The trial is expected to last about 10 days. An
initial determination is expected by Dec. 1, and the final determination
by March 1, 2000. The ITC determination is subject to Presidential
Review and may be appealed to the Federal Circuit Court of Appeals.
Visx's suit against Nidek in the U.S. District Court for the
Norther District of California has been stayed pending the outcome of
the ITC proceeding.
Visx's suit against Nidek in Canada is set for trial on Sept.
20, 1999.
Last year, Nidek successfully defended itself against a patent
action by Visx in the United Kingdom. That action was based on Visx's
European patents.
Nidek makes intraocular lenses and surgical and diagnostic
instrumentation for eyecare specialists.
Visx develops technologies and systems for computerized laser
vision correction to treat nearsightedness, astigmatism and
farsightedness.
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