PHILLIPS INTERNATIONAL FILES SUIT AGAINST YOUR HEALTH, INC.

Phillips International (Potomac, MD) has filed a Federal lawsuit against Your Health, Inc. (New York) for breach of contract related to the cancelled sale of Phillips Health Group to Your Health. Phillips terminated the contract with Your Health on April 13 due to the failure of Your Health to make cash deposits called for by the agreement.

Phillips is suing for a $500,000 payment that it claims was never delivered and is also seeking judicial confirmation that Your Health's breaches of contract result in termination of an additional editorial license agreement.

On March 31, Phillips agreed to sell its health information publishing and nutritional products business to Your Health. Total purchase price was not given. The contract called for Your Health was to deposit $10 million in an escrow account within three days. When the deposit was not made on time, Your Health agreed to make a non-refundable $2 million payment directly to Phillips and put $8 million into the account the next day. Phillips received $1.5 million but the $8 million was never deposited and the deal was terminated.