Court Dismisses Baseless Unfair Business Practices Lawsuit That Was Brought Against Insmed.RICHMOND, Va. -- Insmed Incorporated (Nasdaq:INSM INSM Initiative Neue Soziale Marktwirtschaft (German) INSM Integrated Network and Systems Management ): On June 9, 2006, the United States District Court for the Northern District of California The United States District Court for the Northern District of California is the Federal district court whose jurisdiction comprises following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa (Judge Saundra Brown Armstrong) granted Insmed's Motion to Dismiss the Complaint filed by Tercica, Inc. in the case Tercica, Inc. vs. Insmed Incorporated. The Complaint, filed and amended in December 2005, alleged violations of the California Business and Professions Code and the federal Lanham Act The Lanham Act of 1946, also known as the Trademark Act (15 U.S.C.A. § 1051 et seq., ch. 540, 60 Stat. 427 [1988 & Supp. V 1993]), is a federal statute that regulates the use of Trademarks in commercial activity. for allegedly false and misleading statements made by Insmed. In dismissing the Complaint, the Court ruled, among other things, that Tercica had not met its burden of establishing that the alleged statements made by Insmed constitute "false advertising", or that the Court had jurisdiction over Insmed in this case and that the venue was proper. Further, by dismissing Tercica's complaint without leave to amend, the Court recognized that the deficiencies in Tercica's lawsuit cannot be cured by filing another lawsuit against Insmed in the United States District Court for the Northern District of California. Insmed previously notified Tercica that Insmed would seek fees and costs related to Tercica's baseless lawsuit. Given the Court's ruling, Insmed will pursue this option. "We are pleased that the Court ruled that Tercica's complaint was without merit and upheld Insmed's right to inform the investment community about our product development activities related to IPLEX(TM) without violating the Lanham Act," stated Geoffrey Allan, Insmed's Chief Executive Officer. "In line with Tercica's continuing preference to litigate, Tercica has indicated they have filed a new lawsuit against Insmed in the Virginia courts that is similar to the lawsuit dismissed in California. As with the California case, Insmed will vigorously defend its position and right to inform the investment community about product development activities." About Insmed Insmed is a biopharmaceutical company focused on the development and commercialization of drugs for the treatment of metabolic diseases metabolic disease, n a disorder that causes dysfunction of the metabolic action of the body, resulting in loss of control of homeostasis. paraneoplastic syndrome and endocrine endocrine /en·do·crine/ (en´do-krin, en´do-krin) 1. secreting internally. 2. pertaining to internal secretions; hormonal. See also under system. en·do·crine adj. disorders with unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical needs. For more information, please visit www.insmed.com. Forward Looking Statements Statements included within this press release, which are not historical in nature, may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for the purposes of the 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. provided by 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. Forward-looking statements in this press release include, but are not limited to, statements regarding the pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and or future ability to conduct our business as now conducted and as it is currently proposed to be conducted. Such forward-looking statements are subject to numerous risks and uncertainties, including but not limited to the uncertainty of the outcome of any litigation with Tercica. We can give no assurances that we would be successful in any litigation or that such litigation would not have a material adverse effect on our business, financial condition and results of operation. Furthermore, we may not be able to afford the expense of defending against such a claim. As a result of these and other risks and uncertainties, actual results may differ materially from those described in this press release. For further information with respect to factors that could cause actual results to differ from expectations, reference is made to reports filed by the Company with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. |
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