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LITIGATION
3 Months Ended
Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]  
NOTE 14. LITIGATION

In August 2013, a stockholder derivative action was filed in the Court of Common Pleas of Philadelphia County (the “Court”) against the Company, and certain of its directors and officers.  The complaint, as amended on September 18, 2013, sought an unspecified amount of damages and principally alleges breaches of fiduciary duty related to the conduct of the Company’s directors and officers in a series of capital raising transactions in 2011 to 2013In March 2014, this complaint was dismissed without prejudice by the Court. The plaintiff did not file a new complaint by the April 2014 deadline, nor did the plaintiff appeal the Court’s decision by the April 2014 deadline. Accordingly, this matter is now closed.

 

In February 2014, Patrick T. Mooney, M.D., our former President and Chief Executive Officer, and his wife, Elizabeth Mooney, filed a complaint against us and certain of our directors and officers in the Court of Common Pleas in Philadelphia County.  The complaint, which alleges (i) that Dr. Mooney’s termination was in breach of his employment agreement and that he is entitled to certain severance benefits, (ii) that certain legally required disclosures by the Company and its general counsel defamed Dr. Mooney, and (iii) that Dr. Mooney’s wife is entitled to damages under a theory of loss of consortium, seeks in excess of $20 million in damages.  We have filed a response to the complaint seeking dismissal of four of the six counts, denying the allegations in the two counts we have not sought to dismiss, and asserting counterclaims against Dr. Mooney.  Dr. Mooney has denied the allegations of the counterclaims. We believe we have strong defenses to the claims asserted and we intend to defend them vigorously. We similarly believe we have strong support for our counterclaims and will pursue them vigorously. The Court has set a tentative date in July 2015.