Arrayit Corporation (ARYC)

[FIERCE]

Without consideration provided by the plaintiff as agreed upon there is no legitimate court case. The only thing those swindlers have accomplished is to tie Arrayit up in litigation.

Please make sure to read this as it is important to see there is no valid case!

This week, Arrayit and its management asked the court to reject the plaintiffs' request to prevent it from issuing securities, stating that "there are no restrictions in any agreement between the parties that prevent Arrayit from issuing shares to anyone."

The request, Arrayit added, is part of an attempt by the plaintiffs to "refashion" the initial settlement agreement to their advantage.

Further, Arrayit claims that its settlement with Taub called for Array Molecular to raise up to $2 million to fund development of the food safety testing technology, but that the plaintiffs "have yet to raise a single dollar of that obligation."

Arrayit said that it has been working on the technology, anticipating reimbursement from Array Molecular for its expenses, but without that money it was forced to borrow $630,000 from various third parties. These loans included options for repayment in the form of Arrayit stock.

"Had [the] plaintiffs provided funding for the project, as agreed to, the loans would not have been necessary in the first place," Arrayit said. Although a portion of those loans have been converted to shares, additional conversion can be prevented by the plaintiffs, it added.

In a statement to the court, Arrayit CEO Rene Schena also claimed that its USDA contract has been threatened by Taub's actions at a scientific meeting last year.

Specifically, Arrayit alleged that Taub was present at the meeting, which included a presentation by the company and USDA collaborators, but that he was "so disruptive and insulting to the USDA representative in charge of developing the [food safety] test that she checked further into Taub's background," discovering that he had pleaded no contest to securities violations charges by the SEC in 1999.

Schena stated in the court filing that the USDA representative told her that the agency "would not move forward" with the food safety project as long as Taub was involved.

Arrayit has asked the court to reject any injunction request that would prevent it from issuing stock to its lenders, or, if an injunction is granted, to require the plaintiffs to post a $2 million bond to pay off the lenders.