A Medical Device Daily

A jury has found in favor of a former employee in his wrongful termination case against Del Global Technologies (Franklin Park, Illinois), awarding him a total of about $2.2 million.

Jeffrey Moeller, a former employee of Del Global's medical group, initiated an action in the Circuit Court of Cook County, Illinois, against the company and its former president, Walter Schneider in June 2002, seeking $2.37 million in damages.

Moeller alleged four claims in the action: retaliatory discharge from employment with Del Global, defamation, intentional interference with his employment relationship with Del Global and prospective employers, and to hold the company liable for any misconduct of Del Global under a theory of "piercing the corporate veil."

In September 2006, the court dismissed the part of Moeller's claim of intentional interference as alleged interference with his relationship with prospective employers.

The trial date was postponed on various occasions at plaintiff's request and was finally rescheduled for April 7.

On April 17, the circuit court jury returned a verdict in favor of Moeller for $1.8 million for lost earnings, back pay, front pay and benefits on the retaliatory discharge claim, and for $200,000 for emotional distress/reputation damages and $200,000 in punitive damages on the defamation claim.

The company said it is assessing the probable loss if the jury verdict is not overturned, and any increase in liability will be recorded as a charge to the company's earnings for 3Q08.

"Obviously we are extremely disappointed with this verdict; however we continue to believe that Del Medical committed no wrongdoing in releasing Mr. Moeller," said James Risher, CEO of Del Global. "Furthermore we intend to vigorously pursue available post-trial remedies, including appeal."

Del Global makes medical and dental imaging systems, and power conversion subsystems and components.

In other legalities: A lawsuit was filed against Candela (Wayland, Massachusetts) by the law firm of Schiffrin Barroway Topaz & Kessler in the U.S. District Court for the District of Massachusetts on behalf of all purchasers of that company's securities.

The complaint alleges that the company failed to disclose and misrepresented material adverse facts which were known to defendants or recklessly disregarded by them.

The complaint said that the that the company failed to disclose in its financial statements that it and Palomar Medical Technologies (Burlington, Massachusetts) had exchanged various communications concerning the prospect of patent litigation by Palomar, which if initiated would increase costs and that the Candela lacked adequate internal and financial controls.

On Aug. 10, 2006, the company reported that it had filed a claim against Palomar asserting that certain Palomar systems infringed upon patents held by Candela. The company said that it would seek an injunction and monetary damages.

Then, on August 21, 2006, the company reported that net income for the fourth quarter would be 10 cents per share, well below the 23 cents per share analysts had expected.

The company said it was not satisfied with these results, and that it would examine its position and the market and plan to introduce new products in the first half of 2007. Upon the release of this news, the complaint said, the company's shares declined $4.16 per share, or 28.71%, to close on Aug. 22, 2006 at $10.33 per share.