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Galil seeks damages from HealthTronics over failed bid for Endocare
By Lisa Kerner
Charlotte, N.C., June 22 - Galil Medical Ltd. has filed suit asking the Delaware Chancery Court to enjoin HealthTronics, Inc. from further interfering with a merger agreement between Galil and Endocare, Inc., it was announced on Monday.
In addition, Galil is seeking payment for damages from HealthTronics, claiming it has suffered as a result of HealthTronics' "tortious interference with Galil's rights under that agreement."
In November 2008, Galil, an Elron Electronic Industries Ltd. group company, entered into a definitive agreement to acquire Endocare in a stock-for-stock transaction.
HealthTronics is accused by Galil of helping Endocare to wrongfully terminate its merger agreement with Galil so that it could acquire Endocare.
Galil alleges that HealthTronics agreed to cover Endocare's costs if Endocare is forced to pay a breakup fee to Galil.
A trial in Galil's lawsuit against Endocare related to the breach of the merger agreement is set for July 9 and July 10 in Chancery Court in Georgetown, Del., Galil said.
"Galil looks forward to prevailing in these two lawsuits, and then getting back on the track of completing our merger with Endocare," Galil president and chief executive officer Martin J. Emerson said in a company news release.
HealthTronics' $1.25-per-share tender offer for Endocare ends July 21.
Elron is a member of the IDB Holding group, an Israel-based technology holding company.
Austin, Texas-based HealthTronics provides health-care services and manufactures medical devices primarily for the urology field.
Located in Irvine, Calif., Endocare develops minimally invasive medical devices used for tissue and tumor ablation.
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