MyMedicalRecords Wins Appeal to Proceed to Collect $30 Million From Surgery Center Management


LOS ANGELES, CA--(Marketwired - Jul 2, 2013) - MMRGlobal, Inc. (OTCQB: MMRF), through its wholly owned subsidiary MyMedicalRecords, Inc. (collectively, "MMR"), today announced that pursuant to an order dated July 1, 2013, the Appellate Court dismissed an appeal by Surgery Center Management, LLC ("SCM") filed May 17, 2012. Accordingly, the case will be remanded back to Superior Court where MMR will pursue its claim for breach of contract against SCM, seeking as much as $30 million in damages. The appeal was filed in the Second Appellate District, Division Eight. The decision of the Court was decided without oral argument by the parties giving MMR a green light to move forward with the case in the trial court. The Court of Appeal ruled on the written briefs alone which MMR believes vindicates its position that there never was a valid basis for the appeal and it was nothing more than a stalling tactic by SCM. 

According to Robert H. Lorsch, MMRGlobal CEO, "MyMedicalRecords looks forward to proceeding with the case on the merits before the Los Angeles Superior Court where we will pursue claims for breach of contract, seeking as much as $30 million in damages. MMR believes there is no viable defense to SCM's breach of the agreement at issue. As of this date, SCM already owes MMR more than $15 million, plus interest and penalties."

The case stems from a December 9, 2011 Non-Exclusive Settlement and Patent License Agreement ("Agreement") whereby SCM contracted to pay MMR an initial payment of $5 million payable on December 23, 2011, and additional payments of $5 million per year for five consecutive years, to license certain of MMR's health IT and Personal Health Record patents covering uses of MMR's personal and professional health IT products and services. On January 19, 2012, MyMedicalRecords, Inc. filed a lawsuit in the Superior Court of the State of California for the County of Los Angeles for breach of contract and damages in an amount of $30 million. On September 19, 2012, the Company engaged the law firm of Liner Grode Stein Yankelevitz Sunshine Regenstreif & Taylor LLP ("Liner") to represent MMR in the matter. The Agreement contains an arbitration clause, and non-binding arbitration proceedings have been completed. However, SCM filed an appeal pertaining to the Arbitration provision anyway which MMR learned it won yesterday, July 1st.

MMR believes its claim against SCM continues to be collectible based on a series of publicized settlements involving SCM pertaining to other matters. MMR also believes that SCM and affiliates of SCM continue to operate throughout California and other parts of the United States. As of this date, SCM has a past due balance of nearly $15 million owed to MMR including interest and penalties. The Agreement between MMR and SCM also includes the settlement of any potential claims by MMR against SCM and its affiliates for any past patent infringement. 

MMR is a leading provider of Personal Health Records ("PHRs"), MyEsafeDepositBox storage solutions and electronic document management and imaging systems for healthcare professionals. MMR currently has seven U.S. health information technology (HIT) patents and continuation applications and pending patents covering inventions pertaining to Personal Health Records, Patient Portals and other Electronic Health Record systems. On June 19, 2013, MMR received a Notice of Allowance, application number 13/714,720, from the United States Patent and Trademark Office entitled "Method for Providing a User with a Service for Accessing and Collecting Prescriptions," which will become MMR's eighth patent in its U.S. health IT patent portfolio. The Company also has HIT patents issued or pending in 12 other countries of commercial interest including Australia, Singapore, New Zealand, Mexico, Japan, Canada, Hong Kong, South Korea, Israel, and European nations. Additionally, MMR acquired biotechnology intellectual property separate from its health IT portfolio as a result of a reverse merger with Favrille, Inc., a biopharmaceutical company, in January 2009. After investing more than $100 million in research and development on its FavId™/Specifid™ vaccine trials and use of customized tumor cells to treat lymphoma patients and other technologies. MMR's biotech assets include an extensive portfolio including its anti-CD20 monoclonal antibodies, data from vaccine trials, thousands of patient tumor samples, and other intellectual property which MMR has already licensed to a major pharmaceutical company under a $13 million non-exclusive licensing agreement.

About MMRGlobal
MMRGlobal, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, retail pharmacies, and professional organizations and affinity groups. The MyMedicalRecords PHR enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. MyMedicalRecords is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients through an integrated patient portal. Through its merger with Favrille, Inc. in January 2009, the Company acquired intellectual property biotech assets that include anti-CD20 antibodies and data and samples from its FavId™/Specifid™ vaccine clinical trials for the treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about MMRGlobal, Inc. visit www.mmrglobal.com. View demos and video tutorials of the Company's products and services at www.mmrtheater.com.

Forward-Looking Statements
All statements in this press release that are not strictly historical in nature, whether or not such statement relates directly to Surgery Center Management, LLC, and including, without limitation, intellectual property enforcement actions, infringement claims or litigation, intellectual property licenses, and future performance, management's expectations, beliefs, intentions, estimates or projections, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause MMR's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words (and their derivations) such as "need," "possibility," "potential," "intend," "offer," "development," "if," "negotiate," "when," "begun," "believe," "achieve," "will," "estimate," "expect," "maintain," "plan," and "continue," or the negative of these words. Actual outcomes and results of operations and the timing of selected events may differ materially from the results predicted, and any reported results should not be considered as an indication of future performance. Such statements are necessarily based on assumptions and estimates and are subject to various risks and uncertainties, including those relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in economic, business, industry, market, legal and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners, potential licensees, competitors and legislative, judicial and other governmental authorities and officials. Factors that could cause or contribute to such differences include, but are not limited to: unexpected outcomes with respect to intellectual property enforcement actions, claims of intellectual property infringement and general intellectual property litigation; our ability to maintain, develop, monetize and protect our patent portfolio for both MMR's health IT and biotechnology intellectual property assets in the U.S. and internationally; the timing of milestone payments in connection with licensing our intellectual property; our ability to establish and maintain strategic relationships; changes in our relationships with our licensees; the risk MMR's products are not adopted or viewed favorably by the healthcare community and consumer retail market; business prospects, results of operations or financial condition; risks related to the current uncertainty and instability in financial and lending markets, including global economic uncertainties; the timing and volume of sales and installations; the length of sales cycles and the installation process; the market's acceptance of new product and service introductions; competitive product offerings and promotions; changes in government laws and regulations including the 2009 HITECH Act and changes in Meaningful Use and the 2010 Affordable Care Act; future changes in tax legislation and initiatives in the healthcare industry; undetected errors in our products; the possibility of interruption at our data centers; risks related to third party vendors; risks related to obtaining and integrating third-party licensed technology; risks related to a security breach by third parties; risks associated with recruitment and retention of key personnel; other litigation matters; uncertainties associated with doing business internationally across borders and territories; and additional risks discussed in MMR's filings with the Securities and Exchange Commission. MMR is providing this information as of the date of this release and, except as required by applicable law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

Contact Information:

CONTACT:

Michael Selsman
Public Communications Co.
ms@publiccommunications.biz
(310) 922-7033