Thriftycents: The language you quoted is a warranty. It would be one of many contained in the contract. If determined to be a material provision, and it most likely would be, CYDY could allege that the contact has been breached and that it is therefore entitled to rescind the contract and recover any monetary damages it may have suffered.

Should CYDY do so, Vyera would undoubtedly deny any breach and assert counterclaims of its own against CYDY. Absent a quick settlement, such a lawsuit could last for months/years and be quite expensive for both parties.

In my judgment, it is much too early to glean the impact the FTC suit against Vyera will or might have on CYDY's interests. That suit could be settled pursuant to a Consent Decree in the near future under terms that would have little or no bearing on Vyera's performance of its marketing duties. On the other hand, it could become a problem for CYDY at the FDA. As of now, we need much more unfolding info to assess the potential risks.