Bloomberg News

AngioDynamics Wins Default Judgment in Biolitec Litigation (1)

January 14, 2014

AngioDynamics Inc. (ANGO:US) won a default judgment in a lawsuit against Biolitec AG over the German company’s failure to produce Chief Executive Officer Wolfgang Neuberger and other witnesses for questioning.

AngioDynamics claimed in the suit that Biolitec diverted assets to avoid paying a $16.5 million judgment issued in New York federal court, according to an order issued today by U.S. District Judge Michael Ponsor in Boston.

“At the end of this long road of blatant misconduct, there is only one terminus: entry of judgment by default,” the judge wrote.

In April, Ponsor ordered Neuberger arrested for failing to comply with a directive not to merge with a subsidiary, which the judge said would make it “impossible” for AngioDynamics to collect what it was owed. Biolitec has refused to make Neuberger and other witnesses available for depositions by lawyers for AngioDynamics, the judge said today.

Biolitec has made it “crystal clear” that it doesn’t intend to comply with the court’s order blocking the merger, and repeated its refusal “to produce defendant Neuberger and confirmed their unwillingness to pay the assessed fines,” Ponsor wrote.

Ponsor set a Jan. 31 deadline for Latham, New York-based AngioDynamics to file a damages claim against Biolitec.

Joern Gleisner, a spokesman for Jena, Germany-based Biolitec, didn’t immediately respond to an e-mail seeking comment on today’s ruling.

Edward Griffith, a lawyer for Biolitec, didn’t immediately respond after regular business hours to phone and e-mail messages seeking comment on the ruling.

Biolitec merged with its Austrian unit on March 15, the company said in a March 18 statement. Biolitec produces lasers, laser delivery systems and optical fibers.

The U.S. case is AngioDynamics Inc. v. Biolitec AG (BIPX), 09-30181, U.S. District Court, District of Massachusetts (Boston).

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • ANGO
    (AngioDynamics Inc)
    • $13.72 USD
    • -0.18
    • -1.31%
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