IBPI - IntraBiotics Provides Update on Dismissal of Pending Litigation
Monday September 4, 12:30 pm ET
LAFAYETTE, Calif., Sept. 4 /PRNewswire-FirstCall/ -- IntraBiotics Pharmaceuticals, Inc. (OTC Bulletin Board: IBPI.PK - News) today reported on a recent U.S. District Court order in IntraBiotics' pending securities litigation filed in July 2004.
As previously reported, on August 1, 2006, the Court issued an order granting IntraBiotics' and the individual defendants' motion to dismiss plaintiffs' claims under the Securities Exchange Act of 1934, with prejudice. With respect to the claims under the Securities Act of 1933 ("1933 Act Claims"), the Court gave the parties the opportunity to provide supplemental briefs before it would rule on these claims.
As plaintiffs did not file a supplemental brief concerning the 1933 Act Claims, on August 30, 2006, the Court dismissed those claims with prejudice.
As a result of the Court's orders, all of the claims against IntraBiotics and the individual defendants have now been dismissed with prejudice. Plaintiffs have 30 days from entry of judgment in which to file a notice of appeal.
The Company believes the suit to be without merit and intends to defend itself vigorously. Due to the uncertainties surrounding the final outcome of this matter, no amounts have been accrued by the Company. The Company and the individual defendants are insured under the Company's directors' and officers' insurance policies, with $15 million in total coverage, and a $500,000 deductible, which has been met. Nevertheless, the Company may incur expenses in the defense or disposition of the litigation beyond what is covered by insurance.
For further information concerning the shareholder suit, see IntraBiotics' annual report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2006 and the 2006 2nd quarter report on Form 10-Q filed with the Securities and Exchange Commission on July 28, 2006.
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Source: IntraBiotics Pharmaceuticals, Inc.
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