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LITIGATION
6 Months Ended
Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
NOTE 14. LITIGATION

 

In February 2014, Patrick T. Mooney, M.D., the Company’s former President and Chief Executive Officer, and his wife, Elizabeth Mooney, filed a complaint against us and certain of the Company’s 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.  The Company has filed an amended answer to the complaint and amended its counterclaims against Dr. Mooney in order to conserve cash that the Company does not believe it can ultimately recover from Dr. Mooney even if it prevailed on those counterclaims.  The Company believes it has strong defenses to the claims asserted and intends to defend them vigorously.  The Company similarly believes it has strong support for its counterclaim and will pursue it vigorously.  The Court has set a tentative trial date in July 2015.

 

In July, 2014, Dr. Mooney and his wife filed a complaint against the Company, certain of its directors and Officers and a former Director and officer alleging (i) wrongful use of civil proceedings; (ii) abuse of process; and (iii) that Dr. Mooney’s wife is entitled to damages under a theory of loss of consortium, seeks in excess of $30 million in damages.  The complaint was filed following the Company’s amendment of certain counterclaims filed against Dr. Mooney in connection with litigation initiated by Dr. Mooney against us, Echo’s Board of Directors and Ms. Burke in connection with the Company’s September 2013 termination of Dr. Mooney for cause pursuant to his employment agreement.  The Company believes it acted lawfully and in good faith, has strong defenses to the claims asserted and intends to vigorously defend against this lawsuit.