Hemispherx Biopharma announced that after prevailing in a federal lawsuit brought against the company by Cato Capital, the United States District Court for the District of Delaware has ordered Cato to pay Hemispherx attorney’s fees and costs in the amount of $770,852.76. Previously, in September 2014, the Court dismissed all claims brought by Cato against Hemispherx, including counts of breach of contract and fraudulent inducement—completely vindicating the Company of any wrongdoing.
“In furtherance of our corporate policy to seek redress against plaintiffs who bring meritless claims against the Company, we will pursue Cato Capital to the fullest extent of the law to collect this substantial award,” stated Thomas K. Equels, General Counsel for Hemispherx. Consistent with this policy, Hemispherx recently enacted a fee-shifting bylaw that allows the Company to recover fees and costs against stockholders who bring meritless claims against the Company. According to Equels, “Meritless litigation wastes corporate assets. Hemispherx’ potential recovery of attorney fees and costs serves to enhance our developing technologies for important unmet medical needs, such as Chronic Fatigue Syndrome and Ebola.”
