ADM settles lawsuit according to rumors with IGNE for $100Million???
Anyone following ADM can you confirm?
OTHER INFORMATION
Item 1. Legal Proceedings.
May 1995, the Company signed a non-exclusive licensing agreement with Archer
Daniels Midland Company ("ADM") for the manufacture and sale of AstaXinr. On
February 29, 1996 ADM informed the Company that it had decided not to utilize
the Technology and requested that IGENE return approximately In $250,000 in
payments under the License Agreement. IGENE maintains that ADM is not entitled
to the payments and that additional monies are owed to IGENE. On July 21,
1997,
ADM filed suit against the Company in the U.S. District Court in Greenbelt,
Maryland alleging patent infringement and requesting a preliminary injunction
against the Company to cease the use of its astaxanthin manufacturing process.
ADM's request for injunctive relief was denied. On August 4, 1997, the Company
filed a $300,450,000 contract and trade secrets lawsuit in U.S. District Court
in Baltimore, Maryland against ADM, contending that ADM stole the Company's
formula for making its natural astaxanthin pigment, AstaXinr. The Company is
also claiming breach of contract, in regards to the licensing agreement entered
into by the Company and ADM in 1995. The Company contends that it complied
with
all material terms of this agreement, including concentration levels of its
pigment. The Company's claim was re-asserted as a counterclaim against ADM and
the two cases were joined in the District Court in Baltimore, Maryland on
August
24, 1997. On September 10, 1997 the District Court denied ADM's request for
preliminary injunction on the basis that ADM could not demonstrate a likelihood
of success on the merits of its case. Management believes ADM's claims are
meritless. Managements basis for this is that ADM claims that the levels of
pigment the Company said it could produce did not meet contract levels.
Management has copies of ADM's internal memos showing that the levels of
pigment
met the contract specifications. It is management's contention that it is not
probable that this dispute will result in an unfavorable outcome. Accordingly,
no liability has been reflected in the accompanying balance sheet. The Company
had expenses of $658,185 in 1997 relating to this litigation.
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