Digital x-ray developer Swissray International of Elmsford, NY, has filed suit against former medical imaging firm Elscint for fraud, breach of contract, and other claims involving two distribution agreements between the firms that were signed in August 1998.
Filed in New York Supreme Court, the suit alleges that the Israeli firm breached two agreements between the firms. In the first deal, Elscint was supposed to distribute Swissray’s digital x-ray technology internationally; in the second, Swissray would distribute Elscint imaging equipment in Switzerland.
Swissray also alleges that Elscint performed improprieties in its negotiation tactics, engaged in "fraudulent" concealment of the impending sale of its imaging businesses, and breached distribution deals that followed the sale of the imaging units.
Elscint largely disappeared from the medical imaging market when it was sold off in pieces to GE Medical Systems and Picker International in December 1998. It still makes some medical imaging components on a contract-manufacturing basis, and has expanded into other industries such as real estate, entertainment, and hotel management.
By AuntMinnie.com staff writersMarch 29, 2002
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