WILMINGTON, DEL. (CN) – Directors of Cylex lied about their product, ImmuKnow, “a method for measuring the strength of a person’s immune system,” to defraud investors of $2.5 million, Channel Medical Partners claims in Chancery Court.
Cylex and its four-member board of directors falsely claimed the company “was given extremely broad regulatory clearance by the Food and Drug Administration such that ImmuKnow could be marketed and sold in numerous clinical markets without further regulatory clearance, including the following: bone marrow transplant, HIV disease management, hepatitis C virus, infectious disease, rheumatoid arthritis, inflammatory bowel disease, psoriasis, systemic lupus erythematosis, and cancer,” and that “Immuknow’s benefits were proven through clinical trials,” the complaint states.
The value of these markets is $1.8 billion, the complaint in states. But in fact, Channel claims, “ImmuKnow was not able to be legally marketed or sold because it lacked FDA clearance.”
Channel demands money damages. It is represented by John Hendershot with Richards, Layton & Finger. Also named as defendants are Cylex board members Judith Britz, Thomas Bologna, Charles Cahn Jr., and Ronald Hahn.