PMED Paradigm Medical Industries Inc, Stock Trading Message Board News
Paradigm Medical Completes Written Agreement to Settle Lawsuit with Innovative Optics, Inc. and Barton Dietrich Investments, L.P.
SALT LAKE CITY--(BUSINESS WIRE)--Jan. 27, 2005--Paradigm Medical Industries, Inc. (OTCBB: PMED.OB/PMEDW.OB) today announced that a written agreement has been completed to settle a lawsuit that Innovative Optics, Inc. and Barton Dietrich Investments, L.P. brought against the Company and its former executive officers, Thomas F. Motter, Mark R. Miehle, and John W. Hemmer. The lawsuit was filed on July 10, 2003 in the Third District Court for Salt Lake County, State of Utah.
Under the terms of the settlement, U.S. Fire Insurance Company, which issued a Directors and Officers Liability and Company Reimbursement Policy to Paradigm Medical for the period from July 10, 2002 to July 10, 2003, has agreed to pay Innovative Optics, Inc. and Barton Dietrich Investments, L.P. the sum of $367,500. Payment of this amount by U.S. Fire is contingent, however, upon the settlement of a federal court class action lawsuit and a state court class action lawsuit against Paradigm Medical and its former executive officers.
"We are excited to see the finalization of this settlement agreement and look forward to the conclusion of these suits," said Paradigm Medical's Chief Executive Officer, John Y. Yoon.
Verbal agreements have been made to settle the federal court and state court class action lawsuits. Paradigm Medical and U.S. Fire and their respective counsel are in the process of completing written settlement agreements of these lawsuits.
The federal court class action lawsuit was originally filed on May 14, 2003 by Richard Meyer, individually and on behalf of all others similarly situated, against Paradigm Medical and its former executive officers in the United States District Court for the District of Utah, which was consolidated into a single action on June 28, 2004 with two other class action lawsuits--the class action filed by Michael Marone on June 2, 2003 and the class action lawsuit filed by Lidia Milian on July 21, 2003 against Paradigm Medical and its former executive officers in the same court. The consolidated action is captioned: In re: Paradigm Medical Industries Securities Litigation, with lead plaintiffs Rock Solid Investments of Miami, Inc., Brito & Brito Accounting, Inc., and Joseph Savanjo.
The state court class action lawsuit was filed on October 14, 2003 by Albert Kinzinger, Jr., individually and on behalf of all others similarly situated, against Paradigm Medical and its former executive officers in the Third District Court for Salt Lake County, State of Utah.
As a condition to the settlement agreement with Innovative Optics, Inc. and Barton Dietrich Investments, L.P., the courts in the federal and state class action lawsuits must have entered orders granting final approval of the settlements reached in those respective actions, and such orders must have become final and non-appealable. Paradigm Medical and its former executive officers also agree to execute a policy release in favor of U.S. Fire Insurance Company. The policy release is to be in the form agreed to by the parties.
As a further condition, the settlement agreement provides that U.S. Fire Insurance Company must not have exercised its option to terminate the settlement agreement. U.S. Fire has the option to terminate the settlement agreement if the cumulative dollar value of the claims held by individuals or entities that "opt out" of the federal court and state court class action lawsuits exceeds $250,000. If such "opt outs" exceed $250,000, however, plaintiffs in the federal court and state court class action lawsuits will have five days to cure by reducing the amount of "opt outs" to less than $250,000.
If U.S. Fire exercises its option to terminate the settlement agreement, then all parties to the settlement agreement will be restored to their respective positions in the various actions as of the date of the settlement agreement, and the terms and provisions of the settlement agreement will have no further force and effect on the various parties and will be deemed null and void in their entirety.
Paradigm Medical Industries, Inc., currently develops, manufactures and markets surgical and diagnostic high-tech, proprietary equipment and consumable products for the medical industry. The Company's corporate offices are located at 2355 South 1070 West, Salt Lake City, Utah 84119. Call (801) 977-8970 or visit us at www.paradigm-medical.com.
This press release contains statements that, if not verifiable historic fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm Medical and its business. The predictions embodied in these statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.
Contacts
Paradigm Medical Industries, Inc.
John Y. Yoon, 801-977-8970
