Thread,
Can anyone shed any light on the following information. I have to admit, I've been following CTXS for a while and this doesn't ring a bell.
Briefly, my understanding (from reading the release) is that CTXS is fighting paying INSGY all the money CTXS owes to INSGY. Because of a patent dispute INSGY had with GraphOn. So I'm guessing GraphOn may file a claim against CTXS and CTXS is taking preventative measures.
Either I missed this dispute, or it was not talked about much. Could be what may have spooked the stock recently. But overall it doesn't appear, if CTXS claim is upheld, that this would impact CTXS much at all. From what I can gather, from the short press release, it appears CTXS has a vaild claim(IMHO).
MikeM(From Florida)
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Insignia Receives Indemnity Claim
FREMONT, Calif., Jan. 29 -- Insignia Solutions (INSGY) today announced that it has received from Citrix Systems, Inc. (CTXS) an indemnity claim of uncertain amount, but estimated by Citrix to not exceed $6,250,000, made pursuant to an Asset Purchase Agreement between the companies dated January 10, 1998, as amended. Under that Agreement and a related escrow agreement, $8,750,000 of the purchase price of Insignia's former NTRIGUE product line was deposited in escrow as security for all indemnification obligations of Insignia.
Based on discussions with Citrix, Insignia does not believe that this indemnity claim will prevent $2,500,000 from being released from escrow on February 5, 1999 as previously scheduled. This indemnity claim may however, if it remains unresolved, prevent the release of the balance of escrowed funds in August 1999 as scheduled.
Citrix's indemnity claim is based on a declaratory relief action that Citrix filed against GraphOn Corp. in November 1998 in the United States District Court, Southern District of Florida. Citrix's action against GraphOn seeks a declaratory judgment that Citrix does not infringe any GraphOn proprietary rights and that Citrix has not misappropriated any trade secrets or breached an agreement to which GraphOn is a party. Citrix filed the action in response to and to resolve unsubstantiated assertions first made by GraphOn, and disclosed to Citrix in January 1998, that Insignia used GraphOn confidential information to develop Insignia products, possibly including products Insignia sold to Citrix in February 1998. GraphOn has never filed any action against either Insignia or Citrix relating to its assertions and Insignia believes such assertions by GraphOn are without merit or basis. Accordingly, Insignia intends to contest Citrix's indemnity claim.
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