U.S. District Court rules in favor of Cell Therapeutics to pursue all of its claims against The Lash Group

Cell Therapeutics, Inc. (CTI) (Nasdaq and MTA: CTIC) announced today that the Ninth Circuit Court of Appeals reversed a U.S. District Court order and ruled that CTI should be allowed to pursue all of its claims against The Lash Group, sending the case back to the District Court for trial. CTI filed a complaint against The Lash Group, CTI's former third-party reimbursement consultant for CTI's product TRISENOX, in 2007 seeking $22.8 million in damages for expenses already incurred related to the investigation, defense and a settlement of claims by the U.S. government concerning Medicare reimbursement for TRISENOX and other business losses.

In 2007, CTI settled the claims by the U.S. government without admitting liability and filed a lawsuit including claims that The Lash Group had breached its contractual obligations to CTI as related to its services, as well as an obligation to indemnify the company for damages related to the settlement. CTI sold TRISENOX in 2005 to Cephalon, Inc.

SOURCE Cell Therapeutics, Inc.