Re: 8/29/00 - [COII] Computerized Thermal Imaging, Inc. Files Libel Lawsuit Against Bloomberg
Computerized Thermal Imaging, Inc. Files Libel Lawsuit Against Bloomberg
LAYTON, Utah, Aug 29, 2000 (BUSINESS WIRE) -- Computerized Thermal Imaging, Inc. (OTCBB: COII chart, msgs) announced that it filed a Complaint for Libel in the United States District Court for the District of Utah, Case No. 1:00CV00098K, against Bloomberg, L. P. The Complaint and Summons were also served on Bloomberg through its registered agent in Utah.
The lawsuit alleges that on June 29 and July 18, 2000, Bloomberg published certain "Defamatory Articles" about the Company which were written by David Evans through its news service, Bloomberg News. According to the Complaint, the Defamatory Articles were published over Bloomberg's Internet web site and elsewhere to literally millions of people, and contained certain false, misleading, and defamatory statements regarding the Company's business and its thermal imaging technology, which the Company is focusing on developing as an adjunct imaging tool to mammography in the detection of breast cancer. The lawsuit alleges that, after publication of the "First Defamatory Article" on June 29th, the Company wrote to Bloomberg and explained the numerous inaccuracies and falsehoods contained therein. Although Bloomberg then published on July 18th what it labeled as a "correction" to the first story, this "Second Defamatory Article" still contained defamatory matter calling into doubt (among other things) the Company's ability to attract capital as well as the efficacy of its Breast Imaging System, which is currently undergoing clinical testing by physicians at five independent hospital sites in accordance with a protocol used in connection with the Company's application for Pre-Market Approval from the Food and Drug Administration. The Complaint alleges damages against Bloomberg in excess of One Hundred Million Dollars.
In April of this year, the Company's attorneys, Schoeppl & Burke, P.A., Boca Raton, Florida, also filed a libel lawsuit against Bloomberg and David Evans in the California Superior Court for the County of Los Angeles on behalf of Hitsgalore.com, Inc., an Internet business-to-business search engine company based in Rancho Cucamonga, California. In July, the California court denied Bloomberg's initial attempt to have that lawsuit thrown out under California's "Anti-SLAPP" statute. The Hitsgalore lawsuit is based on a series of "Defamatory Articles" written by Evans and published by Bloomberg that, according to the Complaint, directly caused an immediate drop in the price of the Company's stock of about fifty-three percent (53%) in one day. Hitsgalore has alleged damages against Bloomberg and Evans in that suit of more than Five Hundred Million Dollars.
"The defamatory stories written by David Evans and published by Bloomberg regarding Computerized Thermal Imaging are consistent with what appears to be a pattern and practice by this Bloomberg reporter of falsely reporting or disregarding actual facts regarding a company and using misleading statements, suggestions, factual juxtaposing, and comparisons in an effort to create a more damaging story than would otherwise be presented by a fair and accurate news report," stated Daniel J. Becka, one of the Company's attorneys. "Bloomberg has employed Mr. Evans for more than eight years now, and is quite familiar with Mr. Evans' methods in writing his primarily negative stories," added Mr. Becka. "Bloomberg had the opportunity to correct the defamatory matter contained in the First Defamatory Article and thereby possibly lessen the damage done to CTI. Instead, they chose to ratify Mr. Evans' conduct and republish the defamatory matter in a second article, thereby implying to readers that the false and misleading statements were accurate and could be relied upon," Mr. Becka explained. The Company's Complaint against Bloomberg alleges that the defamatory stories were maliciously composed and published by Bloomberg, and that Bloomberg should therefore be liable for both compensatory and punitive damages.
Company President David Packer issued the following statement regarding the filing: "As a company, our primary focus remains our commitment to our business plan of building and protecting shareholder value by bringing to market thermal imaging products for both medical and industrial applications. Critical to that process is protecting our reputation when false and misleading information is published about us. This legal action demonstrates our commitment to protecting shareholder value and to take the offensive against those seeking to destroy the reputation, market value, and business affairs of the Company through defamatory statements."
Computerized Thermal Imaging, Inc. is in business to improve the quality of life through superior diagnostics. Information about CTI can be found on the Internet at www.cti-net.com or by calling CTI Public Affairs at 801/926-1113.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to technical risks associated with new technology development, government regulatory approvals or continued working capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC.
SOURCE: Computerized Thermal Imaging, Inc.
Contact:
SCHOEPPL & BURKE, P.A.
Daniel J. Becka or Carl F. Schoeppl, 561/394-8301
dan@schoepplburke.com
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