Re: 8/3/00 - [BXM] Superior Court of NJ Awards Biomatrix Summary Judgment Against Libelous Posters on Internet Message Boards
Superior Court of NJ Awards Biomatrix Summary Judgment Against Libelous Posters on Internet Message Boards
RIDGEFIELD, N.J., Aug 3, 2000 /PRNewswire via COMTEX/ -- Biomatrix, Inc. (NYSE: BXM chart, msgs) 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 chart, msgs), 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 chart, msgs) with Genzyme Surgical Products (Nasdaq: GZSP chart, msgs) 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.
Biomatrix, Inc., headquartered in Ridgefield, New Jersey, is an international biomedical company that develops, manufactures and commercializes elastoviscous products made from proprietary biological polymers called hylans which are used in therapeutic medical applications and in skin care products.
Certain statements in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, the outcome of a class action lawsuit against the company, the regulatory approval process, obtaining and enforcing patents, reimbursement by private health care providers, manufacturing capabilities, projected earnings and financial results, growing product demand, product liability, inventory levels of our marketing partners, future product development, the mailing of a joint proxy statement/prospectus and the holding of a special stockholders meeting in connection with the formation of Genzyme Biosurgery, the completion of the formation of Genzyme Biosurgery, the creation of a new publicly traded stock for Genzyme Biosurgery, the future growth and success of Genzyme Biosurgery, conditions in the financial markets relevant to the proposed creation of Genzyme Biosurgery, the likelihood of regulatory and other approvals of the transaction, the operational integration associated with the formation of Genzyme Biosurgery and other risks generally associated with a transaction of this type, and other risks detailed in Biomatrix' reports filed under the Securities Exchange Act, including Forms 10-Q and Biomatrix' annual report on Form 10-K for the year ended December 31, 1999. For more information on Biomatrix, please visit the Company's web site at biomatrix.com.
Investors are urged to read the joint proxy statement/prospectus relating to the formation of Genzyme Biosurgery filed with the Securities and Exchange Commission because it contains important information. The joint proxy statement/prospectus and other documents filed by Biomatrix and Genzyme with the commission may be obtained free of charge at the commission's web site (http://www.sec.gov) and from Biomatrix or Genzyme. Requests to Biomatrix may be directed to Anne Marie Fields, or you can access documents on the company's web site (http://www.biomatrix.com). Requests to Genzyme may be directed to Sally Curley, or you can access documents on the company's web site (http://www.genzyme.com).
Editor's note: Synvisc(R), Hylaform(R), Gelvisc(R) Vet, Hylashield(R) and HylaSine(R) are registered trademarks of Biomatrix, Inc. Source: Biomatrix, Inc.
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Contact:
Endre A. Balazs, M.D., Chief Executive Officer, or Rory Riggs,
President, or Anne Marie Fields, Investor Relations, all of Biomatrix, Inc.,
201-945-9550
URL: biomatrix.com
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