Neovasc reports that the United States District Court for the District of Massachusetts has granted a stay of judgment pending the completion of its appeal
12:33 PM ET 12/23/16 | Briefing.com
"?Having this stay in place will allow our team to continue to advance both our Tiara and Reducer products and help patients in need," commented Alexei Marko, CEO of Neovasc. "?2017 is shaping up to be an exciting time, with important clinical and development milestones expected throughout the year."
The judgment stems from a jury verdict reached in May 2016 and subsequent rulings by the court related to a lawsuit filed by CardiAQ against Neovasc related to its Tiara technology. As a result of the court order imposing a stay, CardiAQ cannot enforce the money judgment pending the outcome of the appeal.Under the terms of the stay, Neovasc will deposit US$70 million into a joint escrow account and enter into a general security agreement related to the remaining damages awarded by the court. Neovasc will also require court approval for transactions outside the course of normal business until such time that an appeal is decided in Neovasc's favor or the Company posts the remaining amount of money judgement into the joint escrow account.The Company is preparing to appeal the validity of the award, as well as the ruling on inventorship to the United States Court of Appeal for the Federal Circuit. The appellate process may take approximately a year to complete.
Also, the Company reports that on December 14, 2016 a hearing took place in Munich, Germany regarding the ongoing European litigation with CardiAQ related to one of Neovasc's patent applications for its Tiara technology. Further arguments were heard in court and no decision was rendered by the court at this time. Neovasc intends to continue to vigorously defend itself in the litigation with CardiAQ.
12:33 PM ET 12/23/16 | Briefing.com
"?Having this stay in place will allow our team to continue to advance both our Tiara and Reducer products and help patients in need," commented Alexei Marko, CEO of Neovasc. "?2017 is shaping up to be an exciting time, with important clinical and development milestones expected throughout the year."
The judgment stems from a jury verdict reached in May 2016 and subsequent rulings by the court related to a lawsuit filed by CardiAQ against Neovasc related to its Tiara technology. As a result of the court order imposing a stay, CardiAQ cannot enforce the money judgment pending the outcome of the appeal.Under the terms of the stay, Neovasc will deposit US$70 million into a joint escrow account and enter into a general security agreement related to the remaining damages awarded by the court. Neovasc will also require court approval for transactions outside the course of normal business until such time that an appeal is decided in Neovasc's favor or the Company posts the remaining amount of money judgement into the joint escrow account.The Company is preparing to appeal the validity of the award, as well as the ruling on inventorship to the United States Court of Appeal for the Federal Circuit. The appellate process may take approximately a year to complete.
Also, the Company reports that on December 14, 2016 a hearing took place in Munich, Germany regarding the ongoing European litigation with CardiAQ related to one of Neovasc's patent applications for its Tiara technology. Further arguments were heard in court and no decision was rendered by the court at this time. Neovasc intends to continue to vigorously defend itself in the litigation with CardiAQ.
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