Message #16 From:
Stock News Bot Date: October 26, 2005 04:24:00 AM
MCDG News Molecular Diagnostics Files Patent Suit against Diamics, Inc.
CHICAGO--(BUSINESS WIRE)--Oct. 26, 2005--Molecular Diagnostics, Inc. (OTCBB: MCDG.OB) filed suit on Friday, October 21, 2005 against Diamics, Inc. and Diamics LLC. for unfair business practices, misappropriation of MDI trade secrets and proprietary information, and Patent and Copyright infringement.
The civil suit was filed in the Federal District Court for the Northern District of California against Diamics, Inc, seeking injunctive relief and damages in excess of $30,000,000.
MDI is a biomolecular diagnostics company engaged in the design, development and commercialization of cost-effective screening systems to assist in the early detection of cancer. MDI has designed and developed a fully-automated, objective analysis and diagnostic system for cervical screening.
Diamics was formed by Peter Gombrich, MDI's former Chairman of the Board and CEO. MDI alleges that Gombrich and a former employee, misappropriated MDI's proprietary information, trade secrets and patented products. The suit charges Diamics with misappropriation of trade secrets, unfair business practices, conversion, and Patent and Copyright infringement. The suit alleges that Diamics' actions in converting MDI's assets and proprietary Trade Secrets to its own use were accompanied by oppressive and malicious actions to take MDI's proprietary trade secrets and convert them to its own use without any agreements, compensation or consideration, and to do irreparable harm to MDI.
The suit claims MDI has developed products, trade secrets, written marketing and descriptive material, procedures, and patents which have been and continue to be unlawfully used, copied, disclosed, or infringed by Diamics. Such items include the following: US Patent entitled the "Physician's collector."; US Patent entitled "Cervical screening system"; US Patent entitled "Personal cervical cell collector"; The InPath (TM) System and related image analysis systems, which screen for cancer and cancer related diseases; The Cocktail CVX(TM) which detects and highlights abnormal cervical cells; Mapping systems based on obtaining cervical cell specimens locationally preserved on a MDI cervical cell collector; and Cellular liquid preservatives designed to optimize molecular based testing.
Molecular Diagnostics develops cost-effective cancer screening systems, which can be utilized in a laboratory or at the point-of-care, to assist in the early detection of cervical, gastrointestinal, and other cancers. The InPath(TM) System is being developed to provide medical practitioners with a highly accurate, low-cost, cervical cancer screening system that can be integrated into existing medical models or at the point-of-care.
Certain statements in this release are forward-looking. These statements are based on Molecular Diagnostics' current expectations and involve many risks and uncertainties, such as the company's inability to obtain sufficient financing, the possibility that clinical trials will not substantiate Molecular Diagnostics' expectations with respect to the InPath(TM) System, and other factors set forth in reports and documents filed by Molecular Diagnostics with the Securities and Exchange Commission. Actual results may differ materially from Molecular Diagnostic's current expectations depending upon a number of factors affecting the Company's business. These factors include, among others, risks and uncertainties detailed in the Company's periodic public filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-KSB for the year ended December 31, 2004 and its Quarterly Reports on Form 10-QSB for the quarters ended March 31, 2005 and June 30, 2005. Except as expressly required by law, Molecular Diagnostics undertakes no obligation to publicly update or revise any forward-looking statements contained herein.
