Legal Proceedings.
−Removed: On October 6, 2021, Relief filed a complaint in New York State Court, claiming that the Company failed to honor its obligations under the Collaboration Agreement.
−Removed: Relief’s complaint seeks several remedies, including damages for alleged breaches of the terms of the Collaboration Agreement.
−Removed: We believe that the claims are baseless and without merit.
−Removed: However, the parties to the lawsuit have agreed to engage in an effort to amicably resolve the litigation and have agreed to hold a mediation in early January 2022.
−Removed: If the mediation does not resolve the dispute, the Company intends to defend itself vigorously and to prosecute significant counterclaims against Relief.
−Removed: We may become involved in various legal actions incidental to our business.
−Removed: As of the date of this report, we are not involved in any other legal proceedings that we believe could have a material adverse effect on our financial position or results of operations.
+Added: On October 6, 2021, Relief Therapeutics Holding AG (“Relief Therapeutics”) filed a complaint (the “Complaint”) in New York State Court (the “NYS Court”), claiming that the Company failed to honor its obligations under the collaboration agreement dated September 18, 2020 (the “Collaboration Agreement”).
+Added: The Complaint seeks several remedies, including damages for alleged breaches of the terms of the Collaboration Agreement.
+Added: The Company believes that the claims are baseless and without merit.
+Added: On January 10, 2022, the Company filed a complaint in NYS Court, claiming Relief Therapeutics breached and repudiated the Collaboration Agreement.
+Added: The Company’s complaint seeks damages of at least $185 million.
+Added: The parties to the lawsuits agreed to engage in mediation in an effort to amicably resolve the litigation.
+Added: If the mediation does not resolve the dispute, the Company intends to defend itself vigorously and to prosecute its claims against Relief Therapeutics.
+Added: There can be no assurance, however, that we will be able to successfully resolve the dispute through mediation or that, in the event the dispute continues in litigation, we will be successful in our claims or in our opposition to Relief Therapeutics’ claims.
+Added: On January 18, 2022, a federal securities class action complaint was filed against the Company, its Chief Executive Officer at the time, Jonathan Javitt, and its former Chief Financial Officer, William Fricker, by purported stockholder Cristian Dal Bosco (the “Dal Bosco Complaint”).
+Added: The Dal Bosco Complaint alleges that the Company made false or misleading statements or otherwise failed to disclose that the Company’s EUA application contained insufficient data regarding the potential benefits and risks of ZYESAMI and, accordingly, the FDA was unlikely to approve it.
+Added: The Company believes the Dal Bosco Complaint is baseless and without merit and intends to defend itself vigorously.
+Added: There can be no assurance, however, that the Company will be successful.
+Added: The Dal Bosco Complaint has led to the filing, and threatened filing, of almost verbatim class action complaints.
+Added: In addition to the matters described above, we may become involved in various legal actions incidental to our business.
+Added: As of the date hereof, we are not involved in any other legal proceedings that we believe could have a material adverse effect on our financial position or results of operations, but regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, and diversion of management resources.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.