Dygn sues top ex executives
biz.yahoo.com
Wednesday September 20, 9:19 am Eastern Time
Press Release
DynaGen Sues Two Former Executives for Defamation, Civil Conspiracy and Breach of Contract
Suit Alleges that Former Executives Posted False and Misleading Statements on Internet Stock ``Chat Room''
WALTHAM, Mass.--(BUSINESS WIRE)--Sept. 20, 2000-- DynaGen, Inc. (OTCBB:DYGN - news; BSE:DYGN) Wednesday announced that the company, together with its subsidiary Superior Pharmaceutical Co., initiated litigation against two former DynaGen executives, Douglas Hanson and Steven Kuchen.
DynaGen filed a Complaint in the Court of Common Pleas for Hamilton County, Ohio (Cincinnati), which alleges defamation, civil conspiracy and breach of contract. The counts against Hanson and Kuchen stem from their activities in an internet stock ``chat room,'' including posting false and misleading statements concerning DynaGen and its subsidiaries.
Hanson was a vice president of DynaGen and its subsidiary Superior Pharmaceutical Co. until April 1999 when his employment ended as part of a company-wide downsizing. Kuchen was controller and director of Finance at DynaGen's subsidiary Able Laboratories Inc. until April 1999 when he resigned from the company. Both Hanson and Kuchen executed confidentiality agreements that prohibited them from disclosing confidential information and other information they obtained and used in the course of their employment with the company.
DynaGen's Complaint alleges that Hanson and Kuchen, under the Internet pseudonyms ``truseeker'' and ``Drugco'' respectively, posted false and defamatory statements regarding the company. The Complaint also alleges that Hanson and Kuchen used information obtained during their employment with the company to post misleading statements intended to injure DynaGen and its subsidiaries. The company identified ``truseeker'' and ``Drugco'' through subpoenas issued to the Internet chat room and to Hanson's and Kuchen's Internet service provider.
In addition to identifying Hanson and Kuchen, the company identified numerous other derogatory messages as having been posted using the Internet account of a competing pharmaceutical distributor. DynaGen, through legal counsel, has issued a cease and desist letter to the competitor and will consider further legal action if those postings continue.
``We are shocked to discover that Dr. Hanson and Mr. Kuchen would commit such harmful acts affecting our employees, shareholders and customers,'' stated C. Robert Cusick, president and chief executive officer of DynaGen. ``We intend to pursue this matter to the fullest extent of the law and we will continue to investigate whether other individuals are involved and if any securities laws have been violated. It saddens me that these individuals -- who were always fairly and respectfully -- would strive to destroy our hard work and accomplishments.''
DynaGen's Complaint was filed with the court on Aug. 16, 2000 as Case number A0005104 and seeks damages in an amount to be proven at trial for all four counts.
The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor'' for forward-looking statements. Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by DynaGen, Inc.) contain statements that are forward-looking. Such statements relate to anticipated future revenues of the companies and success of current product offerings. There is no assurance that the action taken by the company will ensure statements made in such chat rooms in the future will be accurate, not disclose confidential information or will not be false and misleading. There is also no assurance that the company will review these postings in the future and take action. Investors should review company's official filings for information provided by the company.
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Contact:
Investor Awareness Inc., Deerfield, Ill.
Tony Schor, 847/945-2222
or
Investor Relations Services, Inc., New Smyrna Beach, FL
904/409-0200
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