DELRAY BEACH, Fla., Feb. 3, 2005 (PRIMEZONE) -- Hard to Treat Diseases, Incorporated (HTTD) (Pink Sheets:HTDS) announces today a litigation status update relating to its claims against former Company officers and directors Ronald Shinn and Gerry Knight and Shinn Capital Group Inc.
As previously announced, HTTD filed a Motion for Emergency Preliminary Injunction against Shinn and Knight for their actions relating to ArTec, Inc.'s claims to Tubercin(r). While the motion was pending, on December 23, 2004, the Securities and Exchange Commission issued an order suspending the trading of ArTec. The SEC only has the authority to suspend trading for a 10 day period, however, the SEC also warned broker/dealers that they "should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. ...If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he or she should refrain from entering quotations relating to ATKJ's securities until such time as he or she has familiarized himself or herself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action." SEC Release No. 50923.
It is the Company's position that the SEC's suspension of trading in ArTec, along with the additional broker/dealer requirements, has the substantially similar impact as the Preliminary Injunction that had been sought. Management has decided that, as a practicable matter of efficiency and economy, the Motion for Emergency Preliminary Injunction should be withdrawn as it would replicate the efforts of the SEC. If circumstances change, the Company will consider all available options to enforce its legal rights.
HTTD filed a Motion to Compel and Motion for Sanctions against Shinn and Knight for failure to produce documents requested in the course of the litigation. On January 19, 2005, the Court granted HTTD's Motion to Compel, ordering Defendants to produce business records and documents. The Court denied HTTD's Motion for Sanctions, with prejudice for HTTD to refile the Motion for Sanctions along with documents indicating the amount of attorneys' fees and costs associated with filing the Motion to Compel. The documents HTTD has sought relate to the operation of the Company, its records and finances, and other material information.
The Company has been advised that courts routinely encourage the negotiated resolution of litigated matters. As an example, court-ordered mediation is required in the overwhelming majority of civil litigation. Following that advice, the Company has undertaken to seek a negotiated resolution to the current business-related dispute with defendants. This resolution would be in the best interests of the parties and HTTD's shareholders, because it could resolve the dispute more quickly, more economically, and allow the parties to exercise some control in the outcome of the settlement. If an immediate resolution can be reached, further litigation can be avoided and HTTD can implement its previously announced strategy of negotiating with major drug firms.
Management's intention and goal with this litigation is to resolve the current dispute in the most efficient and economical manner to provide the maximum benefit to the Company and to HTTD's shareholders. If negotiations or mediation fail, HTTD is prepared to move towards a trial as soon as practicable, depending on the Court's calendar.
The Company cannot overemphasize the fact that any intent to seek a negotiated resolution does not in any way diminish management's belief and commitment to the strength and validity of its claims against Defendants.
HTTD's shareholders and investors will be kept informed of all developments as they occur regarding the above matters.
HTTD is currently involved in litigation regarding the rights to Tubercin(r). Additional information and details regarding the litigation can be viewed at our website at: www.htdsotc.com
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our product and testing service in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.