Bovie Medical Corporation (“Bovie” or the “Company”) (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced that it has been served with a summons and complaint in a stockholders derivative action that has been filed by two purported stockholders against the Company, several officers, directors and one former director. The complaint alleges, among other things, breach of fiduciary duties and self dealing by certain officers and directors. The plaintiffs are seeking unspecified monetary damages on behalf of the Company, as well as various forms of equitable relief including, the implementation of a number of specific corporate governance changes. Management believes the action to be frivolous and without merit.
In July 2010, the Company’s Board of Directors removed a director for cause. The Company then sued the former director alleging that he engaged in self-dealing and other wrongful acts, including statements intended to directly and negatively impact Bovie’s share price. In response, the former director made unfounded allegations in a counterclaim against Bovie. The allegations in the derivative action appear to be based largely on the former director’s counterclaim.
Management is investigating whether there is a collusive connection between the newly-filed derivative action and the pending lawsuit with the former director. In the event that it is determined that any such collusion has taken place and is in fact wrongful, Management will take appropriate action to protect the Company and its stockholders.
Cautionary Note on Forward-Looking StatementsCertain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
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