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Basel, June 30, 2004
Promega False Claims Complaint Dismissed by Virginia Federal Court
Promega False Claims Complaint Against Roche Dismissed By Virginia
Federal Court
The U.S. District Court for the Eastern District of Virginia today
dismissed a case filed by the Promega Corporation against Hoffmann-La
Roche Inc (Roche Molecular Systems) and Applied Biosystems (ABI),
rejecting Promega's claims that Roche and ABI had committed fraud
against the U.S. Government.
The case is related to Roche's efforts to enforce its Nobel-prize
winning PCR (Polymerase Chain Reaction) technology, which is widely
used by health and law enforcement officials. Roche is suing Promega
in the Northern District of California for infringing patents covering
this technology. Roche believes Promega filed its Virginia case
in part to force a settlement of the California case.
Last July 2003, the U.S. Department of Justice expressly rejected
Promega's request that it intervene in the same Virginia case. The
case was then "unsealed" in November 2003 to permit Promega
to litigate on its own. Roche and ABI moved to dismiss the case.
Today the District Court granted that motion.
U.S. District Court Judge Claude M. Hilton dismissed the case notwithstanding
he was legally obligated to assume everything Promega had alleged
was true.
"Plaintiffs fail to allege specific facts about what exactly
was obtained through the alleged fraud," Judge Hilton stated
in the opinion and order issued today. "Vague allegations of
higher payments and generalized platitudes regarding the reduced
use of competitors' products are not enough."
"As we have stated from the beginning, Promega's case was
baseless and should never have been filed," said Heino von
Prondzynski, Head of Roche Diagnostics and Member of the Roche Executive
Committee. "We will continue to hold Promega accountable for
its infringement of our PCR technology."
The False Claims Act requires the plaintiff who brings the suit
to be the "original source" of the information, thus encouraging
"insiders" to come forward. Because of this, Roche and
ABI had also sought to dismiss the case because Promega relied extensively
on public information. The Court stated it was unnecessary to address
this and other grounds for dismissal of the case, because Promega's
complaint, on its face, did not meet the standards for a suit under
the False Claims Act.
The case was dismissed without prejudice, granting Promega 14 days
to amend its complaint.
About Roche and Roche Diagnostics
Headquartered in Basel, Switzerland, Roche is one of the world's
leading innovation-driven healthcare groups. Its core businesses
are pharmaceuticals and diagnostics. Roche is number one in the
global diagnostics market, the leading supplier of pharmaceuticals
for cancer and a leader in virology and transplantation. As a supplier
of products and services for the prevention, diagnosis and treatment
of disease, the Group contributes on a broad range of fronts to
improving people's health and quality of life. Roche employs roughly
65,000 people in 150 countries. The Group has alliances and research
and development agreements with numerous partners, including majority
ownership interests in Genentech and Chugai. Roche's Diagnostics
Division, the world leader in in-vitro diagnostics with a uniquely
broad product portfolio, supplies a wide array of innovative testing
products and services to researchers, physicians, patients, hospitals
and laboratories world-wide. For further information, please visit
our websites www.roche.com
and www.roche-diagnostics.com.
For more information, please contact:
Lanny
J. Davis
Roche outside
counsel
Tel: +1-202-339-8442
Mobile: +1-202-258-1946 |
Paula
L. Evangelista
Sr. Director, Communications
Roche Molecular Systems, Inc.
Tel:+ 1-925-730-8374 |
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