SOURCE: Kadmon Corporation

Kadmon Corporation

June 23, 2016 16:05 ET

Kadmon Issues Statement on Rosenfeld Lawsuit

NEW YORK, NY--(Marketwired - Jun 23, 2016) -  Kadmon Corporation, LLC today issued the following statement in response to a press release issued on June 22, 2016 from counsel for plaintiff Steven Rosenfeld, regarding the action he commenced on February 3, 2014, against Samuel D. Waksal, Ph.D., Kadmon and Mr. Rosenfeld's former business partner, Joel Schreiber. 

"Like Mr. Rosenfeld's baseless complaint, this press release appears to be a deliberate attempt at extortion against Kadmon," said Steven N. Gordon, Esq., Executive Vice President, General Counsel and Chief Administrative, Compliance and Legal Officer at Kadmon. The complaint alleges that Mr. Rosenfeld and Mr. Schreiber, who, notably, chose not to be a plaintiff, entered into an agreement with Dr. Samuel D. Waksal pursuant to which they would be compensated for raising capital for Kadmon prior to its inception. It is undisputed that, under New York law, such an agreement is unenforceable unless in writing and signed by Dr. Samuel D. Waksal, but there is no such signed agreement. "Mr. Rosenfeld alleges that, while he once had a signed agreement, the only copy he or, apparently, anyone ever had was somehow lost 'in a flood,'" said Mr. Gordon. Because no such written agreement exists, Mr. Rosenfeld's first two complaints were dismissed. A motion to dismiss Mr. Rosenfeld's second amended complaint was denied and that decision was recently affirmed on appeal. Unable to address the credibility of the 'flood' allegation, the appellate court simply held that plaintiff's allegations were sufficient 'at this stage of the litigation.' The credibility of that and plaintiff's other allegations will be fully tested at trial. Kadmon is confident that it will prevail in its defense.

Kadmon also refutes plaintiff's assertion that it was awarded 'costs related to having to fight the appeal.' "These costs, like those awarded in virtually every appellate decision in the New York courts where the lower court's decision is affirmed, relate to certain de minimis administrative expenses, such as printing costs, which often amount to less than $1,000," said Mr. Gordon.

Kadmon continues to be represented by Christopher P. Johnson of Kasowitz, Benson, Torres & Friedman, LLP.

About Kadmon Corporation
Kadmon Corporation, LLC is a fully integrated biopharmaceutical company focused on developing innovative products for significant unmet medical needs. We have a diversified product pipeline in autoimmune and fibrotic diseases, oncology and genetic diseases. 

This press release contains forward-looking statements. These forward-looking statements are based on management's expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such statements. The information contained in this press release is believed to be current as of the date of original issue. Kadmon expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

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    Ellen Tremaine
    Investor Relations
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