Curaxis Pharmaceutical Corp. (fka CURXQ)

[silencedogood2011]

CURX and its lawsuits.

CURX has over 1.7M dollars in lawsuits and pending lawsuits.

These lawsuits were as a result of the failed clinical trials in 2007. the people owed are very important in the Alzheimers arena and CURX has failed to satisfy their debt with them. legal fees are at 105K to deal with litigation.

In 2008, Aptuit, Inc. obtained a judgment for approximately $1.1M in the Circuit Court of Jackson County, Missouri at Kansas City, relating to work it performed for Curaxis in connection with our truncated ALADDIN 301 trial. Aptuit’s claims were based on invoices previously rendered to Curaxis in connection with that work and on a promissory note that Curaxis had delivered to Aptuit in connection with those invoices. We subsequently entered into a settlement agreement with Aptuit that requires payment of $900,000 over the next two years to satisfy this judgment. To date, Curaxis has made payments totaling $400 thousand under the terms of the agreement.


In 2009, Genzyme Corporation obtained a judgment for $424,000 in the United States District Court for the District of Massachusetts, relating to leuprolide supplied to Curaxis in 2006 for our truncated ALADDIN 301 trial. Curaxis did not oppose the entry of this judgment, as it had previously acknowledged the validity of this debt to Genzyme. Genzyme had informally agreed through their counsel to defer any collection activities until approximately early 2011. On May 13, 2011, the Company was served with a First Execution Notice demanding payment of the identified liabilities; a deposition was also scheduled for July 10, 2011. Due to the significant changes in the Company’s management team effective June 24, 2011, Genzyme has informally agreed to delay the proceedings. We expect to have discussions with Genzyme to establish a payment schedule for this judgment during the third quarter of 2011.


In 2009, Margolin Brain Institute obtained a default judgment for $128,469, including interest and attorneys fees, in the Superior Court of the State of California, Fresno County - Civil Division, relating to work it performed in our truncated ALADDIN 301 trial. We expect to engage in discussions concerning settlement and payment of this judgment later in 2011.

The increase in general and administrative expenses for the three months ended June 30, 2011, as compared to the same period for 2010, is primarily related an increase in legal fees. Legal fees for the three months ended June 30, 2011, totaled $105 thousand compared to $49 thousand for the corresponding period of 2010; an increase of $56 thousand

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