CLEVELAND, Sept. 12 DATATRAK International, Inc.(Nasdaq: DATA), today announced that it has filed a lawsuit against certainformer shareholders of ClickFind, Inc. over numerous breaches of therepresentations and warranties made by ClickFind in the merger agreementwhereby DATATRAK acquired ClickFind in February 2006. DATATRAK's suit, filedin the United States District Court for the Northern District of Ohio, EasternDivision, alleges that ClickFind and certain of its former shareholderswillfully and fraudulently failed to disclose material information inconnection with DATATRAK's acquisition of ClickFind, in breach of several ofthe representations and warranties made by ClickFind in the February 2006merger agreement.
DATATRAK is seeking compensatory and punitive damages from certain of theformer shareholders of ClickFind. Furthermore, DATATRAK is seekingreformation of the February 2006 merger agreement such that the $18 millionpurchase price is adjusted to reflect what DATATRAK would have paid forClickFind had ClickFind disclosed the subject material information.
The outcome of the dispute with the former shareholders of ClickFind willnot affect DATATRAK's rights to the technology purchased from ClickFind orDATATRAK's ability to deliver any of its products or services.
About DATATRAK International, Inc.
DATATRAK International, Inc. is a worldwide technology company focused onthe provision of multi-component eClinical solutions and related services forthe clinical trials industry. The Company delivers a complete portfolio ofsoftware products that were created in order to accelerate clinical researchdata from investigative sites to clinical trial sponsors and ultimately theFDA, faster and more efficiently than manual methods or loosely integratedtechnologies. DATATRAK's eClinical software suite can be deployed worldwidethrough an ASP offering or in a licensed Enterprise Transfer model that fullyempowers its clients. The DATATRAK software suite and its earlier versionshave successfully supported hundreds of international clinical trialsinvolving thousands of clinical research sites and encompassing tens ofthousands of patients in 59 countries. DATATRAK International, Inc.'s productsuite has been utilized in some aspect of the clinical development of 16 drugsand one medical device that have received regulatory approval from either theUnited States Food and Drug Administration or counterpart European bodies.DATATRAK International, Inc. has offices located in Cleveland, Ohio, andBryan, Texas. Its common stock is listed on the NASDAQ Stock Market under theticker symbol "DATA." Visit the DATATRAK International, Inc. web site atwww.datatrak.net.
Except for the historical information contained in this press release, thestatements made in this release are forward-looking statements. Theseforward-looking statements are made based on management's expectations,assumptions, estimates and current beliefs concerning the operations, futureresults and prospects of the Company and are subject to uncertainties andfactors (including those specified below) which are difficult to predict and,in many instances, are beyond the control of the Company. Factors that maycause actual results to differ materially from those in the forward-lookingstatements include the limited operating history on which the Company'sperformance can be evaluated; the ability of the Company to continue toenhance its software products to meet customer and market needs; fluctuationsin the Company's quarterly results; the viability of the Company's businessstrategy and its early stage of development; the timing of clinical trialsponsor decisions to conduct new clinical trials or cancel or delay ongoingtrials; the Company's dependence on major customers; government regulationassociated with clinical trials and the approval of new drugs; the ability ofthe Company to compete in