A biotech wins a libel case in court. I assume these posters weren't attacking BXM out of the evilness of their hearts <g>, but rather that they were short the stock. (Unless of course they were disgruntled ex-employees, the other common source of nastiness on the boards). So the next issue is whether the SEC will go after them for attempted stock manipulation in an effort to make an example out of them.
Headline: Superior Court of NJ Awards Biomatrix Summary Judgment Against Libelous Posters on Internet Message Boards
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RIDGEFIELD, N.J., Aug. 3 /PRNewswire/ -- Biomatrix, Inc. (NYSE:BXM) today
reported that the Superior Court of New Jersey granted Biomatrix' request for
summary judgment, finding the defendants, Raymond Constanzo, Richard
Constanzo, and Ephraim Morris, liable for defaming the company, its chief
executive officer and chief scientific officer, Dr. Endre A. Balazs, M.D., and
its executive vice president, Dr. Janet L. Denlinger, Ph.D. The summary
judgment ruling was issued in connection with claims filed by Biomatrix,
Dr. Balazs and Dr. Denlinger against the defendants for defamation, invasion
of privacy, product disparagement, intentional interference with contractual
relations, and intentional infliction of emotional distress arising from false
and malicious statements repeatedly made on a variety of internet message
boards.
In the court's decision granting the company's request for partial summary
judgment, The Honorable Peter E. Boggia, Superior Court of New Jersey, ruled
that "For over one year the defendants posted messages on a Yahoo message
board about the plaintiffs [Biomatrix, Dr. Balazs, Dr. Denlinger]. In their
depositions, the defendants admit to posting the various messages about the
plaintiffs. It was further admitted by the defendants that they had no reason
to believe that any of the messages posted were in fact true. In this case,
the content of the statements was clearly libelous. The messages contained
accusations that were extremely offensive and malicious."
For more than a year now, the defendants have authored and posted messages
on Yahoo!'s Biomatrix, Inc. message board under the following user names
"voteREP," "voteREPBLCN," "vote_republican_2000," "vr_is_back," "cd_438,"
"cd_43eight," "meddra_man," "jenti_is_very_pro_life," "missyx_20000,"
"rnouth2857," "onecutelittlegirl," "bfriendly2me2," "allergictochickenbits,"
as well as several others. In addition, the defendants have authored and
posted similarly libelous, false and malicious statements about Biomatrix, its
employees and its products on Yahoo!'s Genzyme Surgical Products and Genzyme
Tissue Repair message boards under these and other user names. Many of the
messages posted have been lewd, hateful, and offensive toward Biomatrix, its
employees and its products. In the court's decision, the court pointed out
that the defendants had admitted that those statements were false or were made
with no basis to believe that they were true. The court, therefore, ruled
that those statements were false and libelous. Indeed, in sworn depositions,
the defendants confirmed that they possess no evidence of wrongdoing on the
part of Biomatrix or its employees.
In response to the Superior Court of New Jersey's confirmation of
defamation and libel, Dr. Balazs said, "While we are pleased to be vindicated
by this favorable judgment, the victory is bittersweet. Regrettably, our
company, its employees, technology, and lead product were seriously maligned
and suffered at the hands of a few malicious detractors. We are proud that
Biomatrix is one of the first companies to succeed in pursuing such litigation
to summary judgment, and remain committed to upholding the integrity and
reputation of Biomatrix, its employees and its products. We will continue to
defend vigorously against attacks."
Biomatrix has developed and is manufacturing viscoelastic therapeutics for
a variety of medical applications. Synvisc(R) is marketed in the US, most
countries of the European Economic Area, Australia and certain countries in
Latin America and Asia. Biomatrix has contracts to market Synvisc in over
90 countries through marketing and distribution agreements with a number of
large, multi-national healthcare companies, and through its wholly-owned
subsidiaries. Wyeth-Ayerst Laboratories has distribution rights and markets
Synvisc in the US and certain European and Middle Eastern countries;
Boehringer-Ingelheim in France; F. Hoffmann-La Roche Ltd. in Sweden and South
Africa; Novartis Pharma AG throughout Latin America; and Bayer AG in
Australia, New Zealand and certain countries in Asia.
Hylaform(R) is an injectable viscoelastic hylan gel treatment for the
correction of facial wrinkles and depressed scars. It is marketed in
23 countries by Inamed Corp., (NASDAQ:IMDC), formerly Collagen Aesthetics,
Inc. Gelvisc(R) Vet is an elastoviscous hylan product used in veterinary
medicine for the treatment of arthritis and is distributed by
Boehringer-Ingelheim in France. Biomatrix' Hylashield(R) products are
elastoviscous therapeutics for the protection of the surface of the eye from
noxious environmental conditions and are distributed in Canada by I-MED Pharma
Inc., and in Europe, Asia and Australia by Medical Devices Laboratories Europe
GmbH (MDLE) under the name i.com(TM) Comfort Shield. Biomatrix recently
announced FDA clearance to market HylaSine(R), the company's viscoelastic gel
device that is injected during and following sinus surgery. Biomatrix also
manufactures patented elastoviscous intermediates for the skin care industry.
The Creation of Genzyme Biosurgery
Progress continues toward the company's previously announced proposed
merger combining Genzyme Tissue Repair (NASDAQ:GZTR) with Genzyme Surgical
Products (NASDAQ:GZSP) and Biomatrix, Inc. to form a new publicly-traded
division of Genzyme Corporation called Genzyme Biosurgery.
The merger has received clearance from the Federal Trade Commission under
the Hart-Scott-Rodino Antitrust Improvements Act and is being reviewed by the
Securities and Exchange Commission. Once effective, a joint proxy
statement/prospectus will be mailed to shareholders of each company. A
special shareholder meeting will be held to vote on the proposed merger. The
meeting is expected to occur in the third quarter.
Upon formation, Genzyme Biosurgery will have a portfolio of innovative,
market-leading products; a broad product-development pipeline; a premier
manufacturing, marketing, regulatory, and scientific infrastructure; and
substantial financial resources. |
