Greetings everyone. I'm almost ready to buy but still have a couple of questions. My reading of the 10K indicates that in the two separate suites against Peprotech and Immunex, there may be different terms applicable to attorneys' fees and the split between CIST and the institutions. The 10 K is reasonably clear as to any Peprotech proceeds when it states:
" Any damages collected by the Company and the Institutions, net of
reimbursement of legal fees and costs incurred by them in this litigation, will be paid to the Company, which, in turn, will pay the Institutions an amount equal to 7% thereof, representing the Institutions' lost royalties. The Company has agreed to pay one-half of the legal fees incurred by the Company and the Institutions in connection with this litigation." This appears to limit the institutions to 7% of any Peprotech recovery.
The Immunex situation may be different. The 10K indicates that
"Under a fee arrangement with the attorneys handling the litigation against Immunex, the Company's fee payment obligation was completed in July 1994. However, significant ongoing out-of-pocket expenses
of this suit continued to be incurred in Fiscal 1996, which will be partially shared by the Institutions pursuant to a January 1994 agreement under which the Institutions will also participate in any award or settlement which may result."
The 10K doesn't explain the terms of the January, 1994 agreement and we are left in the dark as to what is the split between the institutions and CIST. Also absent in the terms of the fee arrangement with the mouthpieces. As some informed posters have indicated, CIST has top flight lawyers, who, usually live in the classy end of town. It is possible that a contingency fee was worked out between the lawyers and CIST limiting CIST's out of pocket obligations in return for the lawyers' accepting a contingency fee. Sometimes, in the tort field, contingency fees can be as much as 50%. Or possibly, the lawyers simply agreed to stop milking the cow and were hopeful of securing attorneys fees from the Court or in settlement negotiations. I wish we had more information. In closing, I must admit I am impressed by the learned analysis of Rich, Jim, John and others. This holdout is still in his chair but is almost ready to contact E-Schwab to place my order.
Peace,
Bob Cohen
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