(96 Total References)
Exceptional costs relating to the litigation ...
Exceptional costs relating to the litigation against Frank Maguire and related parties amounted to $204,000 which compares to the cost incurred at the 6-month stage of $212,000, the reduction in the second half of the year being a further recovery from our insurers net of the excess on the insurance policy payable by AorTech.
Over the course of the year, the cash position fell from $642,000 to $360,000.
At the interim stage however, the cash position stood at $335,000 and there has therefore been progress during the second half.
As previously reported in our interim accounts and in our recent update to shareholders released on 16 April 2015, the Company continues to pursue a legal action against the former CEO Frank Maguire.
This litigation has been extended and has commenced against Foldax, the Company of which Mr Maguire is presently CEO, together with other associated parties.
This litigation which was started in California has now been transferred to Utah to sit alongside the case against Frank Maguire
As previously announced, Mr Maguire
has made a counter claim for alleged non-payment of expenses amounting to $168,000.
No provision has been made in these financial statements for any potential gains or losses as the action has not progressed sufficiently.
Your Board continues to pursue this action against Mr Maguire, Foldax and other connected parties in order to protect the interests of AorTech and its shareholders.
AorTech International plc
Frank Maguire, Chief Executive Officer (appointed April 2003)
AorTech International plc
We continue to pursue the case against our former CEO Frank Maguire.
AorTech International plc
The exceptional administrative expenses of $83,000 relate to legal fees incurred in the dispute with the Group's former Chief Executive, Mr Maguire, of which further details are set out below.
We announced in June that AorTech is in dispute with Mr Frank Maguire, the Company's previous CEO who resigned in November 2013.
ollowing Mr Maguire's
resignation several matters arose which created serious concerns for your Board.
We have found evidence showing that during his
employment with AorTech Mr Maguire sought to undertake business transactions, unbeknown to the Board, with existing and potential licensees.
resignation from AorTech
, Mr Maguire
took up a senior appointment with a company called Foldax which is involved in the development of a TAVI heart valve.
In addition our investigations revealed that, during his period of employment with AorTech, Mr Maguire had been negotiating with another of AorTech's licensees for a transaction between himself and the licensee to the exclusion of AorTech.AorTech's Board had not been informed of these meetings and discussions.
As a result of these investigations, AorTech
has taken legal action against Mr Maguire
for amongst other matters breach of his
contract, breach of his
fiduciary duties, misappropriation of trade secrets and the retaining of confidential documents, files and assets which are the property of AorTech International
At an initial court hearing on 1 August 2014, the Court indicated it would deny motions in which Mr Maguire
asked the Court to dismiss AorTech's claims identified above.
It is the Board's present intention to vigorously pursue Mr Maguire
through the appropriate legal processes in order to protect AorTech's know-how and trade secrets and, in doing so, protect the Company and its shareholders' interests.
may include seeking, as appropriate, damages from Mr Maguire
At the initial court hearing on 1 August Mr Maguire
was instructed to return all of AorTech's
property including all data and confidential information relating to AorTech's know-how and trade secrets.
However such work has been necessary in view of the serious allegations which arose from Mr Maguire's
is taking advice from our US attorneys on the possibility of taking further action against Mr Maguire
and indeed against Foldax, particularly where it relates to our IP, know-how and trade secrets.
has over many years maintained appropriate insurance cover to protect our IP, know-how and trade secrets.
I am pleased to confirm that AorTech
has recently received confirmation that insurance coverage, in accordance with the policy terms, will be available to meet the ongoing costs of its action against Mr Maguire
The last twelve months, in particular the last six months has been a very difficult period for your Board in view of the inordinate length of time that has been spent on the investigation of the actions of Mr Maguire, our previous CEO.
The Company confirms that it continues ...
The Company confirms that it continues to pursue its legal dispute against its former CEO Frank Maguire.
Mr. Maguire has made a counterclaim for alleged non-payment of expenses totalling $168,000.
The Board believes that this claim is of little merit and appears to include expenses already reimbursed.
The Company will continue to defend the claim vigorously.
As anticipated, the Company has also brought a lawsuit against Mr. Maguire's new business interest and certain related parties.