SHAREHOLDERS OF DISTRIBUTOR FOR DDSI FILE LAWSUIT TO RESCIND CONTRACT BETWEEN DDSI AND DISTRIBUTOR, TESA CORP.
TORRANCE, Calif., Jan. 8 /PRNewswire/ -- A suit has been filed by two shareholders of TESA Corp. against TESA Corp. and Drug Detection Systems Inc. (OTC: DGDT) (DDSI) asking for rescission of the distributor agreement between DDSI and TESA Corp. TESA is exclusive distributor of DDSI's products for law enforcement and corporate customers to detect impaired performance of individuals caused by alcohol, drugs (legal or illegal), fatigue, stress or other factors. The suit alleges that DDSI advised TESA prior to the contract signing that DDSI's model EM/2 Screener product did not require Food and Drug Administration listing. The plaintiffs in the action seek return of distribution rights fees and other amounts paid for products purchased from DDSI by TESA. The plaintiffs further seek punitive damages. DDSI refutes all claims in this action as having no basis in fact. TESA Corp. itself has declined to take action against DDSI since May of 1992 when DDSI's EM/2 Screener application for FDA listing was rejected. This action by the two shareholders of TESA will be resolved as expeditiously as possible. -0- 1/8/93 /CONTACT: Charles E. Phillips of DDSI/OculoKinetics, 310-328-0477/ (DGDT)
CO: Drug Detection Systems Inc.; TESA Corp. ST: California IN: SU:
LS-JB -- LA017 -- 3193 01/08/93 17:01 EST
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|Date:||Jan 8, 1993|
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