A Medical Device Daily
Isolagen (Exton, Pennsylvania) reported that state courts in both Pennsylvania and Texas have dismissed derivative suits filed against it and certain of its current and former officers and directors.
In the Pennsylvania state derivative action, William Thomas Fordyce v. Frank M. DeLape, et al, in the Court of Common Pleas of Chester County, Pennsylvania, Isolagen's motion to dismiss was granted by the Court and the complaint was dismissed with prejudice on Aug. 31.
In the Texas state derivative action, Carmine Vitale v. Frank DeLape, et al, in the 55th Judicial District Court of Harris County, Texas, Isolagen's special exceptions were upheld by the Court, and the complaint was dismissed on Sept. 6.
Nicholas Teti Jr, CEO/chairman of Isolagen, said, “Although either plaintiff can appeal the ruling in their case or re-file their claims, we are encouraged by this positive development and will continue to defend vigorously against these claims.”
Isolagen develops autologous cellular therapies for soft and hard tissue regeneration. The company's product candidates are based on its Isolagen Process. Autologous cellular therapy is the process whereby a patient's own cells are extracted, allowed to multiply and then injected into the patient.
In other court action:American International Industries (AII; Kemah, Texas) reported a settlement in the litigation that it filed against healthcare services organization Orion HealthCorp (previously known as SurgiCare; Roswell, Georgia) and certain of its shareholders, officers and directors, as well as Orion HealthCorp auditors UHY Mann Frankfort Stein Lipp CPAs.
AII said that the insurance carriers for the settling defendants would pay it $750,000 in cash on or before Oct. 23. The settlement includes mutual releases between the parties, but AII said that it intends to continue its litigation against UHY Mann Frankfort Stein Lipp CPAs.
AII is a holding company with interests in various industries and serving as a financial and professional partner to the management of its subsidiaries.