|By Marketwired .||
|February 3, 2014 02:40 PM EST||
LOS ANGELES, CA -- (Marketwired) -- 02/03/14 -- MMRGlobal, Inc. (OTCQB: MMRF), through its wholly owned subsidiary MyMedicalRecords, Inc. (collectively, "MMR"), today announced that the California Superior Court ruled in favor of MMR and denied a demur brought by Surgery Center Management, LLC ("SCM") this morning. The Court further ordered SCM to answer MMR's complaint within ten days. Accordingly, MMR will continue to pursue its claim for breach of contract against SCM, seeking at least $30 million in damages. The win follows a July 1, 2013 order dismissing an appeal filed by SCM in the Second Appellate District, Division Eight. That Court dismissed the appeal without oral argument by the parties, giving MMR a green light to move forward with the case in the trial court. The Court of Appeal ruled on written briefs alone which MMR believes vindicates its position that there never was a valid basis for the appeal and it was nothing more than a stalling tactic by SCM.
According to Robert H. Lorsch, MMRGlobal CEO, upon leaving the courthouse, "MyMedicalRecords looks forward to next steps with the case where the Company will pursue its $30 million breach of contract claim." MMR has previously stated that it believes there are no viable defenses to SCM's breach of the agreement at issue. As of this date, SCM already owes MMR more than $20 million, plus interest and penalties.
The case stems from a December 9, 2011 Non-Exclusive Settlement and Patent License Agreement ("Agreement") whereby SCM contracted to pay MMR an initial payment of $5 million payable on December 23, 2011, and additional payments of $5 million per year for five consecutive years, to license certain of MMR's health IT and Personal Health Record patents covering uses of MMR's personal and professional health IT products and services. On January 19, 2012, MyMedicalRecords, Inc. filed a lawsuit in the Superior Court of the State of California for the County of Los Angeles for breach of contract and damages in an amount of $30 million. On September 19, 2012, the Company engaged Liner Law to represent MMR in the matter. The Agreement contains an arbitration clause, and the arbitration proceedings have been completed.
MMR believes its claim against SCM continues to be collectible based on a series of settlements involving SCM pertaining to other matters. MMR also believes that SCM and affiliates of SCM continue to operate throughout California and other parts of the United States. The Agreement between MMR and SCM also includes the settlement of any potential claims by MMR against SCM and its affiliates for any past patent infringement which could also be determined at trial.
MMR is a leading provider of Personal Health Records ("PHRs"), MyEsafeDepositBox storage solutions and electronic document management and imaging systems for healthcare professionals. MMR currently has ten U.S. health information technology patents and over 400 claims as well as additional applications and continuation applications and pending patents covering inventions pertaining to Personal Health Records, Patient Portals and other Electronic Health Record systems. MMR also has health IT patents issued or pending in 11 other countries or regional authorities of commercial interest including Australia, Singapore, New Zealand, Mexico, Japan, Canada, China, Hong Kong, South Korea, Israel, and Europe.
MMRGlobal, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, retail pharmacies, and professional organizations and affinity groups. The MyMedicalRecords PHR enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. MyMedicalRecords is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients through an integrated patient portal. Through its merger with Favrille, Inc. in January 2009, the Company acquired intellectual property biotech assets that include anti-CD20 antibodies and data and samples from its FavId/Specifid vaccine clinical trials for the treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about MMRGlobal, Inc. visit www.mmrglobal.com. View demos and video tutorials of the Company's products and services at www.mmrtheater.com.
All statements in this press release that are not strictly historical in nature, whether or not such statement relates directly to Surgery Center Management, LLC, and including, without limitation, intellectual property enforcement actions, infringement claims or litigation, intellectual property licenses, and future performance, management's expectations, beliefs, intentions, estimates or projections, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause MMR's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words (and their derivations) such as "need," "possibility," "potential," "intend," "offer," "development," "if," "negotiate," "when," "begun," "believe," "achieve," "will," "estimate," "expect," "maintain," "plan," and "continue," or the negative of these words. Actual outcomes and results of operations and the timing of selected events may differ materially from the results predicted, and any reported results should not be considered as an indication of future performance. Such statements are necessarily based on assumptions and estimates and are subject to various risks and uncertainties, including those relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in economic, business, industry, market, legal and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners, potential licensees, competitors and legislative, judicial and other governmental authorities and officials. Factors that could cause or contribute to such differences include, but are not limited to: unexpected outcomes with respect to intellectual property enforcement actions, claims of intellectual property infringement and general intellectual property litigation; our ability to maintain, develop, monetize and protect our patent portfolio for both MMR's health IT and biotechnology intellectual property assets in the U.S. and internationally; the timing of milestone payments in connection with licensing our intellectual property; our ability to establish and maintain strategic relationships; changes in our relationships with our licensees; the risk MMR's products are not adopted or viewed favorably by the healthcare community and consumer retail market; business prospects, results of operations or financial condition; risks related to the current uncertainty and instability in financial and lending markets, including global economic uncertainties; the timing and volume of sales and installations; the length of sales cycles and the installation process; the market's acceptance of new product and service introductions; competitive product offerings and promotions; changes in government laws and regulations including the 2009 HITECH Act and changes in Meaningful Use and the 2010 Affordable Care Act; future changes in tax legislation and initiatives in the healthcare industry; undetected errors in our products; the possibility of interruption at our data centers; risks related to third party vendors; risks related to obtaining and integrating third-party licensed technology; risks related to a security breach by third parties; risks associated with recruitment and retention of key personnel; other litigation matters; uncertainties associated with doing business internationally across borders and territories; and additional risks discussed in MMR's filings with the Securities and Exchange Commission. MMR is providing this information as of the date of this release and, except as required by applicable law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
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