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: June 3, 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
None.
(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 June 3, 1998 announcing the
Company has filed a civil theft lawsuit seeking 396.6 million in
damages and has also filed a separate claim under RICO against
the Andrx Corporation.
Item 6. Resignations of Registrant's Directors. N/A.
Item 7. Financial Statements and Exhibits.
(a) Exhibits
Exhibit 99.1 Press Release, announcing the Company has filed a civil theft
lawsuit seeking 396.6 million in damages and has also filed a separate claim
under RICO against the Andrx Corporation
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.
MEDIX RESOURCES, INC.
Date: June 9, 1998 By: /s/ John P. Yeros
----------------------
John P. Yeros, President and Chief Executive Officer
Medix Resources, Inc.
Healthcare Staffing - Internet Medical Networks
360 South Garfield Street, Suite 400
Denver, Colorado 80209
-----------------------
Company contact: Investor Relations:
Medix Resources, Inc. Lippert/Heilshorn & Associates, Inc.
John P. Yeros Keith L. Lippert ([email protected])
(303) 393-1515 (212) 838-3777
Cymedix Lynx Corporation Bruce Voss ([email protected])
Keith Berman (310) 575-4848
(805) 230-1133
MEDIX RESOURCES FILES $396 MILLION RICO AND CIVIL THEFT LAWSUIT AGAINST ANDRX
CORPORATION
DENVER (June 3, 1998) - Medix Resources, Inc. (NASDAQ: MDIX) today announced
that the Company and its wholly owned subsidiary Cymedix Lynx Corporation
(Cymedix) have filed a lawsuit in Hillsborough County, State of Florida
District Court against Andrx Corporation (Andrx) (NASDAQ: ADRX) and several of
its officers. The suit 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 Cymedix
Lynx.
The Company also announced that a separate claim was filed under Florida's
Racketeer Influenced and Corrupt Organization Act (RICO) against Andrx, its
subsidiary Cybear, Inc. (Cybear) and certain officers of Andrx regarding
computer-related crimes. Additionally, Cymedix has entered claims of
conversion, misappropriation of trade secrets, civil theft, violation of
Florida's Uniform Trade Secrets Act and breach of contract.
Medix Resources is seeking damages in the amount of $396.6 million,
representing treble damages on five-year projected income of $132.2 million,
suffered by Cymedix as a direct and proximate result of alleged activities
conducted by Andrx, Cybear and their officers.
"As a technology company, protection of our intellectual property is of
paramount concern to Medix Resources. We will not allow any misappropriation
of our recently launched patent-pending and copyright-protected product that
has taken several years to develop and refine," said John P. Yeros, chairman
of Medix Resources. "We intend to pursue this matter to its conclusion".
The Cymedix Lynx secure internet network offers an unmatched solution to the
challenge of moving, sharing and tracking medical data to many sectors of the
evolving healthcare system.
<PAGE>
"Stealing of another's property or invention is unconscionable," added Mr.
Yeros. "The evidence against Andrx is striking and has been independently
verified. We are confident the courts will support our claims."
The Company cannot foresee how this matter will proceed, how long it will take
to resolve or how its ultimate impact will affect the financial condition of
the Company. The Cymedix Lynx program represents a substantial investment by
the Company and is expected to be an important source of future income.
Litigation can require substantial resources and the investment of substantial
management time.
Medix Resources, Inc., through its wholly owned subsidiary Cymedix Lynx
Corporation, offers several fully secure patent-pending internet
communications products, using an internet commerce business model. The
Company's core business also 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.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this news release that are not historical
facts contain certain forward-looking information with respect to plans,
projects and/or future performance of the Company, the occurrence of which
involve certain risks and uncertainties detailed in the Company's Form 10-KSB
filed with the Securities and Exchange Commission on March 30, 1998, and the
Company's Form 10-QSB filed on May 18, 1998.
