Next Science Limited (ASX:NXS) Responds to Litigation from Former Employee
Litigation Background
Next Science Limited (ASX:NXS) has announced that former employee Michael Morello has filed a derivative complaint in Florida. The complaint, representing himself as a shareholder, accuses the company and Next Science LLC of breaches of fiduciary duty and mismanagement.
Allegations and Company Response
Mr Morello, who was the VP of Wound Care Sales until December 2023, has raised several claims. He alleges that Next Science’s XBIO™ technology lacks FDA approval as a biofilm eradication process and that the company’s safety measures regarding the XPERIENCE™ surgical solution are inadequate.
In response, Next Science confirmed its products are safe and effective, asserting they are FDA-approved and promoted within their intended use. The Board expresses concern that the complaint may not be in good faith because Mr Morello has attempted to connect it to an ongoing Non-Compete Action initiated by the company against him and other former employees.
Legal Proceedings
The company is conducting an independent investigation into the allegations, in line with best practices, and has enlisted US attorneys to manage both the derivative complaint and the Non-Compete Action. Next Science intends to aggressively pursue its legal claims against Mr Morello and the other involved parties. Further updates regarding the litigation will be provided when there are material developments.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Next Science. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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