UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) : June 10, 1999
_______________
MEDICAL DEVICE ALLIANCE INC.
(Exact name of Registrant as specified in its charter)
Nevada 0-24979 88-0345058
(State of other (Commission (IRS Employer
jurisdiction of File No.) Identification No.)
incorporation or
organization)
3800 Howard Hughes Parkway, Suite 1800, Las Vegas, Nevada 89109
(Address of principal executive offices, including zip code)
(702) 791-2910
(Company's telephone number, including area code)
ITEM 5. OTHER EVENTS
On June 10, 1999, the Honorable Judge William D. Keller of the United States
District Court - Central District of California issued an Order in the patent
infringement action filed by Mentor Corporation (Nasdaq:MNTR) against Medical
Device Alliance Inc., its wholly-owned subsidiary, LySonix Incorporated, and
Misonix, Inc. (Nasdaq:MSON). The Order ruled that Mentor's licensed patent
was invalid and granted certain motions on noninfringement and lost profits
damages to the defendants.
A copy of the press release is attached hereto as Exhibit 99.2.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(c) EXHIBITS
Exhibit No. Description
99.2 Press Release, dated June 14, 1999
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
MEDICAL DEVICE ALLIANCE INC.
Dated: June 15, 1999 By: /s/ Donald K. McGhan
Chairman, Chief Executive
Officer and President
News Release
for immediate release
Company Contact: Marc Sperberg
Investor Relations
(702) 791-2910
MEDICAL DEVICE ALLIANCE INC. WINS PATENT INFRINGEMENT LAWSUIT
LAS VEGAS, NV. - June 14, 1999 - Medical Device Alliance Inc. ("MDAI")
has emerged victorious in its defense against a two-year legal attack waged
by long-time rival Mentor Corporation(Nasdaq:MNTR).
The suit, filed in April 1997, intended to force MDAI, its wholly-owned
subsidiary LySonix Incorporated and codefendant Misonix, Inc. (Nasdaq:MSON)
out of the Ultrasonic Assisted Liposuction ("UAL") industry by claiming the
defendants infringed on a patent Mentor had licensed from a company owned by
Mr. Tullo Parisi and Dr. Richard K. Massengill.
In an Order issued by the Honorable Judge William D. Keller of the United
States District Court - Central District of California, Mentor's patent was
ruled invalid and certain motions on noninfringment and lost profits damages
were granted to the defendants.
Attorney Matthew Powers, lead litigator and partner at Weil, Gotshal &
Manges, LLP, who represented MDAI in the case said, "We discovered that
material information had been withheld from the U.S. Patent and Trademark
Office regarding the patent Mentor was claiming the defendants infringed.
Once that evidence was presented to the court, the Judge agreed with our a
ssertion and ruled the Mentor patent was invalid".
According to MDAI Chief Executive Officer and Chairman of the Board, Donald
K. McGhan, "The Judge's decision that the Mentor patent is invalid provides
the opportunity for LySonix to continue the high level of service and support
that has earned it the position of industry leader. From day one, we have been
outselling Mentor nearly two to one. We believe they felt forcing us out of
the business would clear the way for them to have a monopoly stronghold on
the UAL industry.
Had their attack been successful, I believe the lack of any real competition
would have had a negative effect on equipment pricing, as well as future
research, development and introduction of new UAL products".
Mr. McGhan continued, "Frankly, we're shocked that Mentor's due diligence
prior to the license agreement with Parisi and Massengill didn't uncover the
patent's invalidity. As it is, Mentor's attempt to enforce an invalid patent
against LySonix has cost the companies involved over nine million dollars in
legal expenses alone, plus millions more in management distraction and wasted
time and resources. If the two companies had been able to expend even a
portion of that money on further research, development and clinical studies
for the use of ultrasonic energy for minimally invasive surgery, medical
technology fo all ultrasonic applications would have been advanced
considerably."
Liposuction accounted for an estimated 390,000 procedures in 1998 and is the
most frequently performed plastic surgery procedure in the United States.
Initial market estimates for UAL equipment and accessories ranged from $100
million to $200 million according to Bear Stearns & Co., Inc. and Oppenheimer
& Co., Inc., respectively. Combined sales of UAL devices from both companies
have yet to reach even close to those expectations, many believe due in part to
this lawsuit.
When asked what the Order meant to MDAI, McGhan said, "This will allow
LySonix to get back to the business of growing the UAL market by advancing
and spearheading technological developments in the field".
Medical Device Alliance Inc., based in Las Vegas, Nevada, develops,
manufactures and/or markets medical devices for the specialty markets of
plastic and reconstructive surgery and spinal/orthopedic surgery.
Forward Looking Statements: Statements in this news release looking forward
in time are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements involve risks and uncertainties, including general
economic conditions, delays and risks associated with the performance of
contracts, potential acquisitions, consumer and industry acceptance,
litigation and regulatory risks.
END
