Health Discovery (NASDAQ:WBD) Corporation (HDC) announced on Monday that the United States District Court for the Northern District of Georgia granted its motion for summary judgment, thereby dismissing all counts in a shareholder derivative lawsuit filed against the company and its board of directors.
The lawsuit, initiated by Vennwest Global Technologies, Inc. in September 2020, accused the company of misconduct related to the approval of loans by certain directors and shareholders.
The court's decision, dated September 13, 2024, found that the loans were appropriately approved by the board in accordance with Georgia’s conflicting interest transaction statutes. This ruling allows HDC to recover costs associated with the lawsuit, excluding legal fees.
Colleen Hutchinson, a member of HDC's board, expressed relief at the court's decision, stating that the company can now concentrate on developing its technology without the burden of the lawsuit, which she described as a baseless distraction that has consumed resources over the past four years.
This legal victory comes as a significant development for the Atlanta-based patent owners and lessors company, formerly known as Direct Wireless Communications Inc., which has been embroiled in legal challenges while trying to meet financial obligations amid ongoing litigation.
In other recent news, Health Discovery Corp has announced a significant shift in its leadership. Dr. Alan K. Hauser has been appointed as the new CEO, bringing over twenty-five years of experience in the life sciences industry. He was previously the CEO of Arvetas Biosciences and held a senior vice president role at CDx Precision Health.
His annual base salary is set at $180,000, with performance-based incentives potentially adding up to two million shares of restricted common stock.
Dr. Hauser's appointment follows the departure of former CEO George McGovern. His responsibilities include evaluating the company's intellectual property portfolio, developing commercial opportunities, ensuring compliance with Internal Revenue Service and SEC requirements, and potentially leading the company's common stock listing efforts.
Board members Colleen Hutchinson and Edward Morrison expressed confidence in Dr. Hauser, citing his vision and experience as key factors in his selection.
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