Hard to Treat Diseases, Incorporated Announces Litigation Status Update
DELRAY BEACH, Fla., Feb 3, 2005 (PRIMEZONE via COMTEX) -- Hard to Treat
Diseases, Incorporated (HTTD) (Pink Sheets:HTDS) announces today a litigation
status update relating to its claims against former Company officers and
directors Ronald Shinn and Gerry Knight and Shinn Capital Group Inc.
As previously announced, HTTD filed a Motion for Emergency Preliminary
Injunction against Shinn and Knight for their actions relating to ArTec, Inc.'s
claims to Tubercin(r). While the motion was pending, on December 23, 2004, the
Securities and Exchange Commission issued an order suspending the trading of
ArTec. The SEC only has the authority to suspend trading for a 10 day period,
however, the SEC also warned broker/dealers that they "should be alert to the
fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination
of the trading suspension, no quotation may be entered unless and until they
have strictly complied with all of the provisions of the rule. ...If any broker
or dealer is uncertain as to what is required by Rule 15c2-11, he or she should
refrain from entering quotations relating to ATKJ's securities until such time
as he or she has familiarized himself or herself with the rule and is certain
that all of its provisions have been met. If any broker or dealer enters any
quotation which is in violation of the rule, the Commission will consider the
need for prompt enforcement action." SEC Release No. 50923.
It is the Company's position that the SEC's suspension of trading in ArTec,
along with the additional broker/dealer requirements, has the substantially
similar impact as the Preliminary Injunction that had been sought. Management
has decided that, as a practicable matter of efficiency and economy, the Motion
for Emergency Preliminary Injunction should be withdrawn as it would replicate
the efforts of the SEC. If circumstances change, the Company will consider all
available options to enforce its legal rights.
HTTD filed a Motion to Compel and Motion for Sanctions against Shinn and Knight
for failure to produce documents requested in the course of the litigation. On
January 19, 2005, the Court granted HTTD's Motion to Compel, ordering Defendants
to produce business records and documents. The Court denied HTTD's Motion for
Sanctions, with prejudice for HTTD to refile the Motion for Sanctions along with
documents indicating the amount of attorneys' fees and costs associated with
filing the Motion to Compel. The documents HTTD has sought relate to the
operation of the Company, its records and finances, and other material
information.
The Company has been advised that courts routinely encourage the negotiated
resolution of litigated matters. As an example, court-ordered mediation is
required in the overwhelming majority of civil litigation. Following that
advice, the Company has undertaken to seek a negotiated resolution to the
current business-related dispute with defendants. This resolution would be in
the best interests of the parties and HTTD's shareholders, because it could
resolve the dispute more quickly, more economically, and allow the parties to
exercise some control in the outcome of the settlement. If an immediate
resolution can be reached, further litigation can be avoided and HTTD can
implement its previously announced strategy of negotiating with major drug
firms.
Management's intention and goal with this litigation is to resolve the current
dispute in the most efficient and economical manner to provide the maximum
benefit to the Company and to HTTD's shareholders. If negotiations or mediation
fail, HTTD is prepared to move towards a trial as soon as practicable, depending
on the Court's calendar.
The Company cannot overemphasize the fact that any intent to seek a negotiated
resolution does not in any way diminish management's belief and commitment to
the strength and validity of its claims against Defendants.
HTTD's shareholders and investors will be kept informed of all developments as
they occur regarding the above matters.
HTTD is currently involved in litigation regarding the rights to Tubercin(r).
Additional information and details regarding the litigation can be viewed at our
website at: www.htdsotc.com
SOURCE: Hard to Treat Diseases, Inc.
By Staff
CONTACT: Hard to Treat Diseases, Incorporated
Colm J. King, CEO
(561) 272-6900
htdsotc.com
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