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16. SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2014
Subsequent Events [Abstract]  
16. SUBSEQUENT EVENTS

On July 16, 2014 the Company issued 83,333 shares for services of $12,500.

 

On August 6, 2014 Arrayit Corp. and Avant Diagnostics reached an agreement to settle their lawsuit which provides inter alia:

 

·          Mutual releases between the two companies and a full release of Crucible Capital.

·          Rene Schena and Dr. Mark Schena will join Avant Diagnostics Board of Directors.

·          Arrayit Corporation retains the exclusive right to manufacture OvaDx® and Avant Diagnostics retains the exclusive right to sell OvaDx® on FDA approval.

·          Avant Diagnostics will provide funding to facilitate FDA approval for the OvaDx® diagnostic test.

·          Avant Diagnostics will issue ten million (10,000,000) shares of Avant Diagnostics to Arrayit Corporation as full settlement for the $1,550,000 invoice issued by Arrayit Corporation to Avant Diagnostics on June 20, 2014.

·          Arrayit Corporation will dividend ten million (10,000,000) shares of Avant Diagnostics to the Arrayit Corporation shareholders.

·          Avant Diagnostics and Arrayit Corporation each agree to issue ten million (10,000,000) shares of their common stock to the other company.

·          Arrayit Corporation will recover the exclusive right to sell the OvaDx® diagnostic test on FDA approval upon issuance of ten million (10,000,000) shares of Arrayit Corporation to Avant Diagnostics should Avant Diagnostics not become a publicly traded company within one year.

 

On January 13, 2014, Plaintiff Tamarin Lindenberg sued Arrayit Corporation, Arrayit Diagnostics, Inc., Avant Diagnostics, Inc, John Howell, Steven Scott and Gregg Linn in Civil Action No. L7698-13. Plaintiff alleged violations of the New Jersey Conscientious Employee Protection Act NJSA 34:19-1 to NJSA 34:19-8 (“CEPA”), breach of contract, breach of covenant of good faith and fair dealing, economic duress and intentional infliction of emotional distress. On February 10, 2014, Arrayit Corporation requested the removal of the State Action from the Superior Court of New Jersey, Law Division, Essex County to the United States District Court for the District of New Jersey. Arrayit Corporation’s counsel requested that Plaintiff’s counsel dismiss Arrayit Corporation as a defendant in this matter stating there is no basis against Arrayit Corporation for the purported claim under CEPA just as there is no viable CEPA claim against any of the other non-controlling, minority shareholders (e.g. Plaintiff);  Plaintiff and Arrayit Corporation are not parties to any contractual agreements;  there is no viable legal theory for ‘indirect breach’;  Arrayit Corporation did not engage in any conduct, actions, communications or dealings with Plaintiff giving rise the purported claims against AC for alleged “economic duress,” “intentional infliction of emotional distress” or “tortious interference”; there is no good faith basis in law or fact for any of the claims attempted against Arrayit Corporation. Arrayit Corporation reserves all rights and specifically reserves all of its rights under FRCP Rule 11. On August 6, 2014 the United States District Court, District of New Jersey granted Arrayit Corp’s motion to dismiss and further ruled that leave to amend would not be granted.

 

On August 11, 2014, Plaintiff Reuben Taub sued Defendants Rene Schena, Mark Schena, Todd Martinsky and John Does 1-10 in the Supreme Court of the State of New York, County of New York, Index No. 652454/2014. The nature of the action is loss of plaintiff’s investment in Arrayit Corporation which was induced by, inter alia, defendants’ fraud and failure to properly disclose withholding and other tax liabilities of the Company and misrepresentations concerning the development costs for, and the Company’s ownership interest in OvaDx®. Relief sought is monetary damages of $500,000 plus interest costs and disbursements and attorney’s fees as permitted by law. Rene Schena, Mark Schena and Todd Martinsky deny all of the allegations. The parties are working toward settlement.