This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Omeros Responds To Misleading Announcement By Davis Wright Tremaine Concerning Settlement With Former Chief Financial Officer





SEATTLE, Nov. 9, 2012 /PRNewswire/ -- Omeros Corporation (NASDAQ: OMER) today is addressing misleading statements in a press release issued yesterday by Davis Wright Tremaine, the law firm representing Richard J. Klein, Omeros' former chief financial officer with whom Omeros recently settled a lawsuit regarding his employment with Omeros.  Omeros' reasoned decision to enter into the settlement agreement and focus on its business is explained in its Current Report on Form 8-K filed with the Securities and Exchange Commission on November 1, 2012.  The settlement involved the release of all parties' claims, including Mr. Klein's claim to all Davis Wright Tremaine fees incurred since 2009. Omeros' insurance carrier has agreed to advance payment of the settlement funds subject to a reservation of rights.

Mr. Klein's employment with Omeros was terminated in January 2009. In September 2009, five days following Omeros' public filing of its intent to market its initial public offering, Thomas A. Lemly, partner at Davis Wright Tremaine, filed Mr. Klein's initial complaint alleging wrongful termination in retaliation for his whistleblow in connection with a grant awarded to Omeros by the National Institutes of Health (NIH). 

Omeros flatly denies that its termination of Mr. Klein's employment was retaliatory. Omeros believes that it had well-documented good cause to terminate Mr. Klein, including for his performance, as is detailed at length in the public record of this lawsuit.  Further, the evidentiary ruling by U.S. District Judge John C. Coughenour, cited in Davis Wright Tremaine's press release and issued well after the parties had commenced settlement negotiations, was a ruling on the admissibility of circumstantial evidence, which Omeros believed related only to claims that Judge Coughenour had previously dismissed, and not a finding of fact.

During Mr. Klein's employment with Omeros, he used Omeros' Whistleblower Policy procedures to report to the chairman of Omeros' audit committee that the Company had submitted reimbursement claims to the NIH in connection with the grant for work that Omeros had not performed. Omeros' audit committee, with independent outside counsel, thoroughly investigated Mr. Klein's allegations and the Company's NIH grant and claims procedures. The facts gathered by this investigation demonstrate that Omeros underbilled – not overbilled – the NIH in connection with the grant.  In May 2009, Omeros voluntarily reported to the NIH's Office of Compliance the Company's handling of Mr. Klein's whistleblow allegation and the nature of its research under the grant.

Mr. Klein subsequently presented his claims to the U.S. government, which declined to intervene in his case following its investigation of those claims. The written evidence shows that the NIH officials who reviewed Omeros' voluntary report acknowledged in 2009 that the Company had satisfactorily addressed the matter. An NIH scientist charged with managing the grant also testified that the research performed by Omeros represented a very valuable scientific advancement.  In addition, the same NIH institute that awarded the grant that was the subject of Mr. Klein's allegations recently awarded Omeros a new grant in support of the Company's research.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs