Retractable Technologies, Inc. (NYSE MKT: RVP), (“RTI”) announced today
that Judge Leonard Davis of the United States District Court for the
Eastern District of Texas issued an order on November 10, 2014 granting
in part and denying in part RTI’s motion to recover profits, injunctive
relief and attorneys’ fees.
The Court found that the remedy of disgorgement of a portion of Becton
Dickinson’s (“BD”’s) profits was appropriate but that the $340,524,042
trebled antitrust damages awarded by the jury was a sufficient
disgorgement. The Court determined that the public interest in truthful
information and advertising favored disgorgement because “BD’s false
advertising resulted in an artificially inflated price for BD syringes,
but also lowered the number of RTI syringes in the marketplace.”
The Court also granted injunctive relief having found that BD’s business
practices limited innovation and “BD’s false advertisements suppressed
sales of the VanishPoint®, thereby preventing the market from
full access to this innovative product.” The Court ordered specific
injunctive relief to take effect no later than January 15, 2015. The
specific injunctive relief includes:
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enjoining BD from the use of the “World’s Sharpest Needle” or any
similar assertion of superior sharpness;
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requiring BD to notify all customers who purchased BD syringe products
from July 2, 2004 to date that BD wrongfully claimed that its syringe
needles were sharper and that its statement that it had “data on file”
was false and misleading;
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requiring BD to notify all employees, customers, distributors, Group
Purchasing Organizations (“GPOs”), and government agencies that the
dead space of the VanishPoint® has been within ISO
standards since 2004 and that BD overstated the dead space of the
VanishPoint® to represent that it was higher than some of
BD’s syringes when it was actually less, and that BD’s statement that
it had “data on file” was false and misleading, and, in addition,
posting this notice on its website for a period of three years;
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enjoining BD from advertising that its syringe products save
medication as compared to VanishPoint® products for a
period of three years;
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requiring notification to all employees, customers, distributors,
GPOs, and government agencies that BD’s website, cost calculator,
printed materials, and oral representations alleging BD’s syringes
save medication as compared to the VanishPoint® were based
on false and inaccurate measurement of the VanishPoint®,
and, in addition, posting this notice on its website for a period of
three years; and
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requiring the implementation of a comprehensive training program for
BD employees and distributors that specifically instructs them not to
use old marketing materials and not to make false representations
regarding VanishPoint® syringes.
The Court further awarded attorneys’ fees, but ordered the amount to be
recalculated to meet the Court’s guidelines.
BD is expected to appeal this ruling upon entry of a final judgment,
which has not yet occurred.
On November 10, 2014, a separate Court Order was issued directing the
parties to attend mediation by January 15, 2015.
Retractable manufactures and markets VanishPoint® and Patient
Safe® safety medical products. The VanishPoint® syringe,
blood collection, and IV catheter products are designed to prevent
needlestick injuries and product reuse by retracting the needle directly
from the patient, effectively reducing exposure to the contaminated
needle. Patient Safe® syringes are uniquely designed to
reduce the risk of bloodstream infections resulting from catheter hub
contamination. Retractable's products are distributed by various
specialty and general line distributors.
For more information on Retractable, visit our website at www.vanishpoint.com.
Forward-looking statements in this press release are made pursuant to
the safe harbor provision of the Private Securities Litigation Reform
Act of 1995 and reflect our current views with respect to future events.
We believe that the expectations reflected in such forward-looking
statements are accurate. However, we cannot assure you that such
expectations will materialize. Our actual future performance could
differ materially from such statements.
Factors that could cause or contribute to such differences include, but
are not limited to: our ability to maintain liquidity; our maintenance
of patent protection; the impact of current litigation; our ability to
maintain favorable third party manufacturing and supplier arrangements
and relationships; our ability to quickly increase capacity in response
to an increase in demand; our ability to access the market; our ability
to maintain or lower production costs; our ability to continue to
finance research and development as well as operations and expansion of
production; the continuing interest of larger market players,
specifically BD, in providing devices to the safety market; and other
risks and uncertainties that are detailed from time to time in
Retractable's periodic reports filed with the U.S. Securities and
Exchange Commission.
Copyright Business Wire 2014