Applied DNA Sciences Inc (APDN)

[apdn1mill]

It's from 10Q June 30,2014

http://www.adnas.com/sites/default/files/files/APPLIED_DNA_SCIENCES_INC_10Q_6_30_14%20AS%20FILED.pdf

Litigation
From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. In addition to the estimated loss, the recorded liability includes probable and estimable legal costs associated with the claim or potent ial claim. Litigation is subject to inherent uncertainties, and an adverse result in these or ot
her matters may arise from time to time that may harm the Company’s business. SmartWater, Ltd. v. Applied DNA Sciences, Inc.
(Civil Action No. 12-05731-JS-AKT, Eastern District of New York) –
On June 11, 2014, SmartWater Ltd. (“SmartWater”) filed a motion in the United States District Court for the Eastern District of New York for an order dismissing its patent infringement claims
against the Company with prejudice. On July 18, 2014, the Company filed a response to the motion, seeking to condition the dismissal of the case on an award of its attorneys’ fees and a covenant not to sue with respect to the patents at issue in any court. Also on July 18, 2014, the Court held a conference during which (i) SmartWater agreed to dismiss its claims with prejudice,
with a covenant not to sue, the Company, its customers or any third parties with respect to the patents at issue, and (ii) the Company agreed to dismiss its counterclaims, without prejudice to the Company's request for attorney's fees. On August 8 , 2014, the Company filed a request for entry of a proposed order of dismissal of SmartWater's claims and the Company's counterclaims, in accordance with the agreements made at the July 18, 2014 conference, and SmartWater filed its opposition to the Company's request for attorneys' fees. The Company's reply papers on its
request for attorneys' fees are due to be filed on or before August 29, 2014.