AUDIOSCIENCE ANNOUNCES LAWSUIT
AUDIOSCIENCE ANNOUNCES LAWSUIT MINNETONKA, Minn., April 30 /PRNewswire/ -- AudioScience, Inc.
(NASDAQ: AUDS), announced today that Micronix Integrated Systems, Inc., the initial developer of the company's integrated circuit, had filed a counterclaim against the company. The company had commenced a lawsuit against Micronix in March of this year because of its failure to perform under the development contract.
The company sued Micronix and its president in United States District Court in California for breach of contract, fraud conversion and specific recovery of personal property and claimed damages in excess of $500,000. The company had determined that Micronix had not achieved, and was not able to achieve, its developmental milestones. Within two weeks after the company commenced its lawsuit, Micronix acknowledged the company's right to its personal property and delivered to the company all such property. Micronix refused, however, to compensate the company for monetary damages. Instead, Micronix elected to file a counterclaim against the company, alleging that the company breached the development contract by not giving Micronix an opportunity to cure its inadequate performances. Micronix has also claimed fraud and has asked for punitive damages. Although Micronix is unable to quantify its claimed damages, it has alleged that it believes the damages exceed $5,000,000. The company believes that Micronix counterclaims are totally without merit and represent an attempt by Micronix to pressure the company into withdrawing its lawsuit. The company intends to firmly pursue its actions against Micronix and to vigorously contest the counterclaims. AudioScience, Inc. has developed and will shortly manufacture and market programmable remote controlled hearing systems under the PRIZM(TM) trade name. The company will focus future efforts on medical devices for audiology, otolaryngology and the hearing impaired market. -0- 4/30/92 /CONTACT: Douglas Jensen or James L. Baustert, both of AudioScience, 612-936-0200/ (AUDS) CO: AudioScience, Inc.; Micronix Integrated Systems ST: Minnesota, California IN: MTC SU:
KH -- MN019 -- 5211 04/30/92 17:47 EDT
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|Date:||Apr 30, 1992|
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