CANTON, Mass., June 15 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) announced today that the Circuit Court of the 19th Judicial Circuit in Lake County, Illinois has dismissed with prejudice the complaint filed by Virotek LLC ("Virotek") against Avitar on November 6, 2003, seeking approximately $4 million in damages. The dismissal followed a settlement reached by the parties under which Virotek permanently discontinued its lawsuit in return for Avitar's payment of $47,500 for the purchase of a production tool valued at $50,000 in an earlier Avitar-Virotek agreement.
As previously reported, on November 6, 2003, Virotek filed a complaint against Avitar in the Circuit Court of the 19th Judicial Circuit in Lake County, Illinois. Virotek, a former supplier to Avitar, asserted in its complaint that Avitar had repudiated an alleged agreement to purchase 2 million units of a rapid test strip from Virotek and, as a result of such repudiation, Virotek was seeking $4,007,782.00, said to constitute lost profits.
"We are very pleased with the favorable resolution of this matter," said Peter P. Phildius, Chairman and CEO. "As we had contended in our previous disclosures, we believed that this claim was without merit and the final outcome, which provides us with a valuable production tool at a reasonable cost, confirms our position."
Avitar, Inc. develops, manufactures and markets innovative and proprietary products in the oral fluid diagnostic market, disease and clinical testing market, and customized polyurethane applications used in the wound dressing industry. Oral fluid diagnostics includes the estimated $1.5 billion drugs- of-abuse testing market, which encompasses the corporate workplace and criminal justice markets. Avitar's products include ORALscreen(TM), the world's first non-invasive, rapid, onsite oral fluid test for drugs of abuse. Additionally, Avitar manufactures and markets HYDRASORB(TM), an absorbent topical dressing for moderate to heavy exudating wounds. In the estimated $25 billion in vitro diagnostics market, Avitar is developing diagnostic strategies for disease and clinical testing. Some examples include influenza, diabetes and pregnancy. For more information, see Avitar's website at https://avitarinc.com.
Safe Harbor Statement. This release contains forward looking statements that are subject to risks and uncertainties including financing risks and the development and marketing of new applications and other risks that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. In view of such risks and uncertainties, the Company's actual results could differ materially from those anticipated in such forward looking statements.