Chattem, Inc. Announces Motion to Intervene in Lawsuit Filed by Interstate Fire & Casualty Company.Business Editors CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Nov. 26, 2003 Chattem, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CHTT), a leading marketer and manufacturer of branded consumer products, announced today that Interstate Fire & Casualty Company ("Interstate") has filed a motion to intervene as a party plaintiff in the previously disclosed lawsuit filed by Kemper Indemnity Insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments Company ("Kemper") in the United States District Court for the Eastern District of Tennessee The United States District Court for the Eastern District of Tennessee is the federal court in the Sixth Circuit whose jurisdiction covers all of East Tennessee and a portion of Middle Tennessee. The court comprises 4 divisions. . Like Kemper, Interstate seeks to rescind its excess product liability insurance policy issued to the Company by Interstate (the "Interstate Policy"). The Interstate Policy provides the Company with $25 million of excess coverage for product liability claims, including those asserted in the lawsuits currently pending and anticipated to be filed against the Company relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the existence of phenylpropanolamine phenylpropanolamine /phen·yl·pro·pa·nol·amine/ (-pro?pah-nol´ah-men) an adrenergic, used in the form of the hydrochloride salt as a nasal and sinus decongestant, as an appetite suppressant, and in the treatment of stress incontinence. ("PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia ") in DEXATRIM. Coverage under the Interstate Policy is in excess of $73.5 million of product liability insurance coverage that is available to the Company from Kemper and two other insurance companies. In its lawsuit, Kemper seeks to rescind its policy for $50 million of excess coverage for product liability claims. Coverage under the Kemper policy is in excess of $23.5 million of product liability coverage available from two other insurance companies. The Company has reached agreements with the two insurance companies providing the first $23.5 million of product liability coverage that ensures the substantial portion of the coverage under their policies will be available. Chattem continues to seek a global settlement of PPA claims and does not believe the Interstate action will materially affect those efforts. In the lawsuit, Interstate is seeking to rescind the Interstate Policy based on allegations that the Company failed to disclose the preliminary results of the Yale Study during the submission process to renew the Interstate Policy for coverage for the December 21, 1999 to May 31, 2001 policy period. In the alternative, Interstate is seeking a declaratory judgment declaratory judgment In law, a judgment merely declaring a right or establishing the legal status or interpretation of a law or instrument. It is binding but is distinguished from other judgments or court opinions in that it includes no executive element (an order that on certain policy interpretation issues that if granted would bar or limit coverage for PPA-related claims under the Interstate Policy. These claims by Interstate are similar to those previously asserted by Kemper. The Company believes that the claims made by Interstate in its lawsuit are without merit. The Company will aggressively defend this lawsuit and will vigorously pursue its rights under the Interstate Policy and its available remedies at law against Interstate which may include, among other things, a counterclaim A claim by a defendant opposing the claim of the plaintiff and seeking some relief from the plaintiff for the defendant. A counterclaim contains assertions that the defendant could have made by starting a lawsuit if the plaintiff had not already begun the action. of bad faith against Interstate. For a discussion of the lawsuits pending against the Company relating to DEXATRIM with PPA and the Company's product liability insurance coverage, see the Company's filings with the Securities and Exchange Commission. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which contains a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements. The Company relies on this safe harbor in making such disclosures. The statements are based on management's current beliefs and assumptions about expectations, estimates, strategies and projections. These statements are not guarantees of future performance or results and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. |
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