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Paradigm Medical Industries Completes Settlement of Federal and State Court Class Action Lawsuits.

SALT LAKE CITY -- Paradigm Medical Industries, Inc. (OTCBB: PMED.OB/PMEDW.OB) today announced the completion of the settlement of the federal and state court class action lawsuits that were filed against the Company and its former executive officers, Thomas P. Motter, Mark M. Miehle, and John W. Hemmer.

On February 22, 2005, the Company executed written settlement agreements to settle the federal and state court class action lawsuits. As a condition to the settlement agreements, the courts in such lawsuits must have entered orders granting final approval of the settlements reached in those respective actions, and such orders must have become final and non-appealable.

On August 26, 2005, the federal court entered the order and final judgment granting final approval of the settlement agreement reached on February 22, 2005 in the federal court class action lawsuit, dismissing the complaint filed in the lawsuit with prejudice as against the Company and its former executive officers. In addition, the court permanently enjoined class members in the lawsuit and their successors and assigns from instituting any other actions against the Company and its former executive officers that had been or could have been asserted by the class members against the Company and its former executive officers in the federal court class action lawsuit.

Following the entry of the order and final judgment in the federal court class action lawsuit, there has been a 30-day period to appeal the order and final judgment. The 30-day period has now lapsed and no appeal was made of the order and final judgment. Consequently, the order and final judgment entered by the federal court is non-appealable.

Under the terms of settlement of the federal court class action lawsuit, U.S. Fire Insurance Company, which issued a Directors and Officers Liability and Company Reimbursement Policy to Paradigm Medical for the period from July 10, 2002 to July 10, 2003, agreed to pay the sum of $1,507,500 in cash to the class members that purchased securities of the Company during the period between April 17, 2002 and November 4, 2002.

On August 23, 2005, the state court entered a final judgment and order of dismissal with prejudice, granting final approval of the terms of settlement reached on February 23, 2005 in the state court class action lawsuit, dismissing the state class action lawsuit and all claims contained therein against the Company and its former executive officers, and enjoining the class members in the lawsuit from prosecuting the settled claims against the Company and its former executive officers.

Following the entry of the final judgment and order of dismissal with prejudice in the state court class action lawsuit, there has been a 30-day period to appeal the final judgment and order. The 30-day period has now lapsed and no appeal was made of the final judgment and order. Consequently, the final judgment and order entered by the state court is now non-appealable.

Under the terms of settlement of the state court class action lawsuit, U.S. Fire agreed to pay the sum of $625,000 in cash to the class members that purchased shares of Series E Convertible preferred stock on or about July 11, 2001.

Paradigm Medical Industries, Inc., currently develops, manufactures and markets surgical and diagnostic high-tech, proprietary equipment and consumable products for the medical industry. The Company's corporate offices are located at 2355 South 1070 West, Salt Lake City, Utah 84119. Call (801) 977-8970 or visit us at www.paradigm-medical.com.

This press release contains statements that, if not verifiable historic fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm and its business. The predictions embodied in these statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.
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Publication:Business Wire
Geographic Code:1USA
Date:Sep 29, 2005
Words:636
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