NEW YORK, June 11, 2015 (GLOBE NEWSWIRE) -- Ruling on a Motion argued this week, State Supreme Court Judge Jeffrey Oing upheld the complaint in an action alleging former ImClone founder and convicted felon Sam Waksal breached his 2009 agreement with Dr. Steven Rosenfeld and his partner. According to Meissner Associates, it is alleged that the agreement was made following Waksal's release from federal prison and provided for a 6% equity stake in his new biotech venture in exchange for Rosenfeld and his partner assisting him in raising funds for the venture. According to the complaint, the plaintiff and his partner introduced Waksal and Kadmon to the investment firm Colbeck Capital Management LLC in late 2009 which resulted in an investment of $250,000,000 in debt and equity into the venture.
The Court rejected Waksal and Kadmon's arguments that numerous email exchanges between the parties did not satisfy the Statute of Frauds, which statute mandates that certain contracts be subscribed to in writing. The Court noted that the days for the need for a wax seal on agreements were long over. Waksal and Kadmon also argued that Dr. Rosenfeld and his partner did not introduce Colbeck to them, but the plaintiff argued that such was contradicted by a text message sent by Waksal to the plaintiff immediately prior to the legal action which confirmed that Dr. Rosenfeld's partner had the connection to Colbeck. The plaintiff also submitted several Colbeck business cards collected from the initial meeting where Waksal initially met Colbeck.
"We won an important round today in the battle for the truth" said Stuart Meissner of the law firm Meissner Associates, an attorney for the plaintiff, along with Joyce Davis Esq.. "Our client will now get his day in court and we look forward to taking Mr. Waksal's deposition along with representatives of Colbeck, and to the trial." The action is one of two pending breach of contract legal actions involving Waksal and Kadmon related entities allegedly reneging on compensating those who assisted them in raising millions for such entities after Waksal was released from prison, and had difficulty raising funds.
On January 13th of this year, CNBC news stated that Kadmon was preparing for an initial public offering.
Meissner Associates is a nationally recognized securities and investment fraud law firm representing institutional and retail investors worldwide to attempt to recover improper investment losses in FINRA arbitration, AAA Arbitration and State and Federal Court. The Managing Member of the firm, Stuart Meissner, is a former Assistant District Attorney in Manhattan and Assistant Attorney General for New York State.