Galil Medical Ltd. (Galil Medical) has filed suit in Delaware court against HealthTronics, Inc. (HealthTronics) on June 21, 2009. In the suit, Galil Medical asked the court to stop HealthTronics from further interfering with its merger agreement with Endocare, Inc. Further Galil Medical asked the court to order that HealthTronics pay damages for the harm it has suffered as a result of HealthTronics' tortious interference with its rights under that agreement.
In the suit, Galil alleges that Healthtronics helped Endocare in its recent attempt to wrongfully terminate the Galil/Endocare Merger Agreement so that HealthTronics could then acquire Endocare. Galil further alleges that, as a part of the scheme, HealthTronics agreed to cover Endocare’s costs if Endocare ultimately is forced to pay a breakup fee to Galil because of its breach of the merger agreement, and notes that HealthTronics has embarked on a snap tender offer for Endocare shares, which will further harm Galil by sowing confusion and uncertainty among Endocare shareholders, and Galil’s employees, customers, and suppliers. The HealthTronics tender offer is scheduled to expire on July 21, 2009.
The suit against HealthTronics follows Galil’s recently-filed lawsuit against Endocare, Inc., which also arose out of Endocare’s alleged breach of the Galil/Endocare Merger Agreement. Trial in that action presently is scheduled for July 9 and 10, 2009 in Chancery Court in Georgetown, Delaware.
Martin J. Emerson, president and chief executive officer of Galil, stated that Galil brought this suit in an effort to stop HealthTronics from further tortuously interfering with Galil’s merger with Endocare. He stated: Galil looks forward to prevailing in these two lawsuits, and then getting back on the track of completing our merger with Endocare. A merger between Galil and Endocare is in the best interests of the doctors and patients who rely on us for the important cancer treatment technology we provide today as well as the innovation we will deliver in the future.