I followed your instructions, read the whole 10Q and found this:
5. Contingencies
Legal proceedings to which the Company is a party are
discussed in Part I, Item 3 ("Legal Proceedings") in the Annual
Report on Form 10-K and in the Company's quarterly reports on Form
10-Q for the periods ending September 30, 1997 and December 31, 1997.
Material developments in such matters and certain other legal
proceedings are discussed in Part II of this filing.
PART II OTHER INFORMATION Item 1. Legal Proceedings
Reference is made to Part II, Item 1 ("Legal Proceedings") of
the Company's previously filed Form 10-Qs for the quarterly periods
ended September 30, 1997 and December 31, 1997.
ESS Litigation. As previously disclosed, a number of claims
have been brought against the Company and certain of its officers,
directors and shareholders in Texas courts by Dr. Azam Anwar and
Benito Hidalgo concerning the Company's acquisition of Endothelial
Support Systems, Inc. (subsequently known as Endovascular Support
Systems, Inc.) ("ESS"), as more fully described in Note 5 to the
Consolidated Financial Statements in Item 1 of the Company's
previously filed Form 10-Q for the quarterly period ended December
31, 1997. At various times between December 1997 and March 1998, the
defendants, including the Company, filed motions for partial summary
judgment and special exemptions in connection with various claims in
the action. A trial date of June 1, 1998 has been scheduled for the
action and the Company's related counterclaim against Mr. Hidalgo.
The Company believes that it has meritorious defenses to the claims
alleged by the plaintiffs in the action. However, no assurance can be
given as to the outcome of the action. The inability of the Company
to prevail in the action, including the loss or impairment of the
right to produce products based on the Company's issued patents,
could have a material adverse effect on the Company's business,
financial condition and results of operations.
As previously disclosed, claims similar to those in the Texas
action were brought against the Company and certain of its officers,
directors and shareholders by Dr. Anwar and Mr. Hidalgo in California
courts, and the defendants brought certain other actions there
against Dr. Anwar and Mr. Hidalgo. After having all such actions
consolidated into a single action, the parties agreed to dismiss the
California action on the condition that the Texas action be allowed
to proceed.
U.S. Patent Litigation. As previously disclosed, the Company
has been named as an additional defendant in a lawsuit originally
filed by Cordis Corporation ("Cordis") against Guidant Corporation
and Advanced Cardiovascular Systems, Inc. A hearing on Cordis' claim
for preliminary injunctive relief against the Company is scheduled
for June 22, 1998. The Company believes that it has meritorious
defenses to the claims alleged by Cordis in the action. However, no
assurance can be given as to the outcome of the action. The inability
of the Company to prevail in the action, including the loss or
impairment of the right to produce products in the United States,
could have a material adverse effect on the Company's business,
financial condition and results of operations.
As previously disclosed, Advanced Cardiovascular Systems, Inc.
("ACS"), a subsidiary of Guidant Corporation, has filed a lawsuit
against the Company in federal district court in San Jose, California
alleging, among other things, that the Company is selling in the
United States stents that infringe on certain patents of ACS. The
Company is aware that on April 10, 1998, ACS filed a second lawsuit
against the Company alleging infringement of a patent that was
granted subsequent to the filing of the initial lawsuit.
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This second lawsuit, also filed in federal district court in San
Jose, involves a division application that is within the family of
patents that are the subject of the initial lawsuit. ACS seeks
injunctive relief, unspecified damages, attorneys' fees and other
relief. The Company believes that it has meritorious defenses to the
claims alleged by ACS in the action. However, no assurance can be
given as to the outcome of the action. The inability of the Company
to prevail in the action, including the loss or impairment of the
right to produce products in the United States, could have a material
adverse effect on the Company's business, financial condition and
results of operations.
From time to time, the Company is involved in other legal
proceedings arising in the ordinary course of its business. As of the
date hereof, except as previously disclosed or discussed herein, the
Company is not a party to any legal proceedings with respect to which
an adverse outcome would, in management's opinion, have a material
adverse effect on the Company's business, financial condition or
results of operations.
Important dates coming up in June.
Pancho |
