UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 19, 1998
MEDIX RESOURCES, INC. (FORMERLY INTERNATIONAL NURSING SERVICES, INC)
(Exact name of registrant as specified in its charter)
Colorado 000-24768 84-1123311
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
360 South Garfield Street, Suite 400, Denver, Colorado 80209
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 393-1515
International Nursing Services, Inc.
(Former name or former address, if changes since last report)
Item 1. Changes in Control of Registrant. N/A.
Item 2. Acquisition or Disposition of Assets. N/A
Item 3. Bankruptcy or Receivership. N/A.
Item 4. Changes in Registrant's Certifying Accountant. N/A.
Item 5. Other Events. Press Release, dated March 19, 1998 announcing the
submission of a formal demand against Andrx Corporation and
Cybear, Inc. alleging software theft from Cymedix Lynx Corporation,
a subsidiary of Medix Resources, Inc.
Item 6. Resignations of Registrant's Directors. N/A.
Item 7. Financial Statements and Exhibits.
(a) Exhibits
99.1 Press Release announcing the submission of a formal demand against
Andrx Corporation and Cybear, Inc. alleging software theft from
Cymedic Lynx Corporation, a subsidiary of Medix Resources, Inc.
Item 8. Change in Fiscal Year. N/A.
Item 9. Sales of Equity Securities Pursuant to Regulation S. N/A.
<PAGE>
SIGNATURES
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.
INTERNATIONAL NURSING SERVICES, INC.
Date: March 25, 1998 By: /s/ John P. Yeros
----------------------
John P. Yeros, President and Chief Executive Officer
Company contacts: Investor Relations
Medix Resources, Inc. Lippert/Heilshorn & Associates, Inc.
John P. Yeros Keith L. Lippert ([email protected]
(303) 393-1515 Sue Yeoh ([email protected])
Cymedix Lynx Corporation (212) 838-3777
Keith Berman Bruce Voss ([email protected])
(805) 230-1133 (310) 575-4848
MEDIX RESOURCES' CYMEDIX LYNX CORPORATION SUBMITS
SOFTWARE THEFT DEMAND LETTER AGAINST
ANDRX CORPORATION AND CYBEAR, INC.
Denver (March 19, 1998) - Medix Resources, Inc. (NASDAQ: MDIX) today announced
that its wholly owned subsidiary Cymedix Lynx Corporation (Cymedix) has
submitted formal demand to Andrx Corporation (Andrx) (NASDAQ: ADRX) for treble
damages in the amount of $396.6 million, representing a direct and proximate
result of alleged activities conducted by Andrx, Cybear, Inc. and individuals
employed by Andrx.
The demand alleges theft and unlawful appropriation of Cymedix' computer
medical software for remote online healthcare providers and Cymedix' internet
medical communications technology, commonly referred to as Lynx, for which a
preliminary patent application was filed on October 15, 1996 and a final
patent application was filed in the United States Patent and Trademark Office
on October 14, 1997.
In addition, the letter provides formal notification that Cymedix intends to
file a claim under Florida's Racketeer Influenced and Corrupt Organization Act
(RICO) against Andrx, Cybear and certain Individuals employed by Andrx
regarding computer-related crimes. The letter also provides formal notice
that Cymedix further intends to file additional claims of conversion; patent
infringement; federal and state claims of unfair, unconscionable and deceptive
trade practices; misappropriation of trade secrets; violation of Florida's
Uniform Trade Secrets Act; and breach of fiduciary duty.
The Company cannot foresee how this matter will proceed, how long it will take
to resolve, or how the ultimate impact of this matter will affect the
financial condition of the Company. The Lynx program represents a substantial
investment by the Company and is expected to be an important source of future
income.
Medix Resources, Inc. is a healthcare services company with two synergistic
lines of business. The Company provides skilled nursing, therapy,
rehabilitation and other medical personnel for flexible staffing in home care,
and in a broad spectrum of healthcare and educational facilities. Through its
wholly owned subsidiary, Cymedix Lynx Corporation, the Company also offers
Lynx, a secure, patent-pending medical communications product that makes use
of the Internet to facilitate more cost-efficient patient care.
***
"Safe Harbor" Statement under the Private Placement Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
contain forward-looking information with respect to plans, projections and/or
future performance of the Company, the occurrence of which involve certain
risks and uncertainties detailed in the Company's filings with the Securities
and Exchange Commission. Reference is made to the Quarterly Report on form
10-QSB filed with the SEC on November 14, 1997.
