Suit Seeks Compensatory and Punitive Damages for Breaches of
Representations and Warranties Made by ClickFind
CLEVELAND, Sept. 12 /PRNewswire-FirstCall/ -- DATATRAK International,
Inc. (Nasdaq: DATA), today announced that it has filed a lawsuit against
certain former shareholders of ClickFind, Inc. over numerous breaches of
the representations and warranties made by ClickFind in the merger
agreement whereby DATATRAK acquired ClickFind in February 2006. DATATRAK's
suit, filed in the United States District Court for the Northern District
of Ohio, Eastern Division, alleges that ClickFind and certain of its former
shareholders willfully and fraudulently failed to disclose material
information in connection with DATATRAK's acquisition of ClickFind, in
breach of several of the representations and warranties made by ClickFind
in the February 2006 merger agreement.
DATATRAK is seeking compensatory and punitive damages from certain of
the former shareholders of ClickFind. Furthermore, DATATRAK is seeking
reformation of the February 2006 merger agreement such that the $18 million
purchase price is adjusted to reflect what DATATRAK would have paid for
ClickFind had ClickFind disclosed the subject material information.
The outcome of the dispute with the former shareholders of ClickFind
will not affect DATATRAK's rights to the technology purchased from
ClickFind or DATATRAK's ability to deliver any of its products or services.
About DATATRAK International, Inc.
DATATRAK International, Inc. is a worldwide technology company focused
on the provision of multi-component eClinical solutions and related
services for the clinical trials industry. The Company delivers a complete
portfolio of software products that were created in order to accelerate
clinical research data from investigative sites to clinical trial sponsors
and ultimately the FDA, faster and more efficiently than manual methods or
loosely integrated technologies. DATATRAK's eClinical software suite can be
deployed worldwide through an ASP offering or in a licensed Enterprise
Transfer model that fully empowers its clients. The DATATRAK software suite
and its earlier versions have successfully supported hundreds of
international clinical trials involving thousands of clinical research
sites and encompassing tens of thousands of patients in 59 countries.
DATATRAK International, Inc.'s product suite has been utilized in some
aspect of the clinical development of 16 drugs and one medical device that
have received regulatory approval from either the United States Food and
Drug Administration or counterpart European bodies. DATATRAK International,
Inc. has offices located in Cleveland, Ohio, and Bryan, Texas. Its common
stock is listed on the NASDAQ Stock Market under the ticker symbol "DATA."
Visit the DATATRAK International, Inc. web site at http://www.datatrak.net.
Except for the historical information contained in this press release,
the statements made in this release are forward-looking statements. These
forward-looking statements are made based on management's expectations,
assumptions, estimates and current beliefs concerning the operations,
future results and prospects of the Company and are subject to
uncertainties and factors (including those specified below) which are
difficult to predict and, in many instances, are beyond the control of the
Company. Factors that may cause actual results to differ materially from
those in the forward-looking statements include the limited operating
history on which the Company's performance can be evaluated; the ability of
the Company to continue to enhance its software products to meet customer
and market needs; fluctuations in the Company's quarterly results; the
viability of the Company's business strategy and its early stage of
development; the timing of clinical trial sponsor decisions to conduct new
clinical trials or cancel or delay ongoing trials; the Company's dependence
on major customers; government regulation associated with clinical trials
and the approval of new drugs; the ability of the Company to compete in the
emerging EDC market; losses that potentially could be incurred from
breaches of contracts or loss of customer data; the inability to protect
intellectual property rights or the infringement upon other's intellectual
property rights; delisting of the Company's common shares from the Nasdaq
due to our failure to continue to meet applicable Nasdaq Capital Market
requirements; the Company's success in integrating ClickFind's operations
into its own operations and the costs associated with maintaining and/or
developing two product suites; the outcome of the Company's disputes with
the former shareholders of ClickFind; the effects and outcomes of the
Company's exploration of potential opportunities directed at maximizing
shareholder value; and general economic conditions such as the rate of
employment, inflation, interest rates and the condition of capital markets.
This list of factors is not all-inclusive. In addition, the Company's
success depends on the outcome of various strategic initiatives it has
undertaken, all of which are based on assumptions made by the Company
concerning trends in the clinical research market and the health care
industry. The Company undertakes no obligation to update publicly or revise
any forward-looking statement whether as a result of new information,
future events or otherwise.
SOURCE DATATRAK International, Inc.
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Related links:
http://www.datatrak.net
CONTACT:
Jeffrey A. Green, Pharm.D., FCP, Chief
Executive Officer, +1-440-443-0082, x112, or Ray Merk, Chief
Financial Officer, +1-440-443-0082, x181, both of DATATRAK
International, Inc.
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