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Hot stock: QT Vascular loses 5.5 cents in early morning trading after litigation update
SHARES of QT Vascular gave up 5.5 Singapore cents or 20.37 per cent to trade at 21.5 cents on Wednesday morning after it gave an update on ongoing litigation cases.
By 10am, the stock was the fourth most heavily traded by volume with 12.98 million shares changing hands.
Earlier in the morning, the healthcare firm warned in a release to the Singapore Exchange that while it believes it has "meritorious defenses" against the claims brought against itself and two subsidiaries, it cannot predict the outcome of the litigation.
QT Vascular added: "There is also no assurance that the claims will not reduce the value of, and the market for, the company's products, thereby materially and adversely affecting the company's business, financial position, results of operation and prospects."
Angioplasty company AngioScore Inc had in June 2012 initiated patent infringement proceedings against the company's subsidiaries, TriReme Medical and Quattro Vascular, as well as QT Vascular's chief executive Eitan Konstantino in relation to the Chocolate PTA balloon catheter. The patent claim is scheduled for trial in September this year.
AngioScore was co-founded by Dr Konstantino.
In addition, AngioScore added claims under Delaware and California state law in June 2014 alleging that Dr Konstantino breached his fiduciary duties to AngioScore by developing the Chocolate PTA and that QT Vascular, TriReme and Quattro Vascular aided the alleged breach. The trial for the State Law claims closed on April 21 this year and the trial court has requested a post-trial briefing before delivering its decision.