BURBANK, Calif., Oct. 20, 2016 (GLOBE NEWSWIRE) -- Imaging3, Inc. (OTCQB:IGNG) announced today that on October 3, 2016 the United States Supreme Court denied John Vuksich’s application for a Writ of Certiorari in connection with the December 2015 and February 2016 Rulings of the Ninth Circuit.
In May of 2012, John M. Vuksich, a shareholder of the Company who alleged that he held shares or proxies totaling more than 30,000,000 common shares in the Company (approximately 5.95% of the then-outstanding stock in the Company prior to the Company’s bankruptcy filing), filed a shareholder derivative action in the Los Angeles County Superior Court against Imaging3. In that litigation, Vuksich challenged certain corporate actions taken by Imaging3 beginning in 2010, including the Company’s amendments to its articles of incorporation authorizing the Company to increase its authorized number of shares of common stock and to authorize the issuance of preferred stock. Among other things, Vuksich sought an order voiding certain company financing agreements and sought an order compelling Imaging3 to fill vacancies on its Board of Directors. This litigation, which also sought to alter the equity structure and management of Imaging3, required the Company to unnecessarily expend limited resources in terms of both management time and funds for attorney’s fees. Imaging3 has long believed that the Vuksich litigation could and would be defeated and vigorously opposed the litigation at significant expense.
Ultimately, the Vuksich litigation evolved into the following appeals from United States District Court rulings which were heard by the Ninth Circuit Court of Appeals on December 9, 2015:
- Order Denying Motion to Dismiss Chapter 11 Case, Case No.: 13-56695 (9th Cir.), appeal filed September 30, 2013, appealing the District Court’s dismissal of the initial appeal of the order.
- Order Disallowing Claims Nos. 23 and 24, Case No.: 14-55499 (9th Cir.), appeal filed March 31, 2014, appealing the District Court’s order affirming the order of the Bankruptcy Court.
- Order Denying Motion for Abandonment of Potential Claims Against Officers and Directors, Case No.: 14-55521 (9th Cir.), appeal filed April 2, 2014, appealing the District Court’s order affirming the order of the Bankruptcy Court.
- Order Confirming Debtor’s First Amended Plan, Case No.: 14-55466 (9th Cir.), appeal filed March 24, 2014, appealing the District Court’s order affirming in part and reversing in part the order of the Bankruptcy Court.
The court ruled in favor of the Company on all four appellate issues.
On December 18, 2015, the United States Court of Appeals for the Ninth Circuit affirmed the rulings of the United States Bankruptcy Court and the United States District Court related to four above appeals that Vuksich had filed, asserting:
- The Bankruptcy Court and the District Court should not have confirmed Imaging3’s Chapter 11 plan of reorganization;
- The claim that Vuksich filed in the Imaging3 bankruptcy case was improperly disallowed by the Bankruptcy Court and the District Court;
- The Bankruptcy Court and the District Court should have abandoned the Vuksich litigation;
- The Bankruptcy Court and the District Court should have dismissed the Imaging3 Chapter 11 bankruptcy case because the court had no jurisdiction over the case.
On February 2, 2016, the Ninth Circuit Judges Tashima, Callahan, and Hurwitz voted to deny Vuksich’s petition for a panel rehearing. Judges Callahan and Hurwitz voted to deny the petition for rehearing en banc, and Judge Tashima concurred. The full court has been advised of the petition, and no judge of the court has requested a vote on the petition for rehearing en banc. Fed. R. App. P. 35. The petitions for rehearing and rehearing en banc were thusly denied.
In April 2016, Vuksich appealed to the Supreme Court of the United States for a writ of certiorari on the Ninth Circuit rulings dismissing his appeals. On October 3, 2016, the Supreme Court denied Vuksich’s application for a writ of certiorari, thereby terminating the Vuksich Litigation.
Dane Medley, Chairman/CEO of Imaging3, commented “We are very pleased with the Supreme Court’s ruling. This ends this protracted and troubling litigation in favor of the Company. Justice has indeed been served.”
Imaging3, Inc., founded in 1993, has developed a patented medical imaging technology called SafeScan™ that will produce 3D medical diagnostic images in real time. Imaging3’s SafeScan technology will allow healthcare professionals to perform diagnostic and therapeutic procedures more quickly and accurately, with fewer safety risks for the patient. In addition, Imaging3’s technology exposes patients to significantly less harmful radiation than current imaging technologies such as CT scans, which the Company believes will allow scans to be used in more pediatric applications than are currently prescribed. The technology also allows for greater portability, easier installation, and a significantly reduced cost burden for the health care system overall. Imaging3 is planning to submit a 510K application to the FDA during 2017 in order to gain approval to commercialize the SafeScan technology.
Visit the Company’s website at http://www.imaging3.com for detailed information about the Company’s technology.
Safe Harbor Statement
Imaging3 cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Imaging3’s business, including, without limitation: the company may not ever obtain FDA approval for any of its devices; the company may not be able to secure the funds necessary to support its product development plans; and the company may not ever achieve the market success to sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger imaging companies, technological obsolescence, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Imaging3 and the risk factors that may affect the realization of forward-looking statements is set forth in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and its Quarterly Report on Form 10-Q. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Imaging3 undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Investor Relations Contact: Amato and Partners, LLC 90 Park Avenue, 17th Floor New York, NY 10016 email@example.com