Mass Financial has filed a lawsuit in the Supreme Court of British Columbia, Canada, against Elekta and others for breach of contract and contract interference with its subsidiary, VSM MedTech, regarding that firm’s magneto-encephalography (MEG) technologies.
The lawsuit seeks injunctive relief and substantial damages, according to the Hong Kong-based Mass Financial.
Michael Smith, president of Mass Financial, said "this lawsuit is of utmost importance to all small, growing companies in any industry. It is really about a big company trying to intimidate a small company, while using very oppressive tactics. I want to ensure our people as well as Elekta, we will exercise all legal means at our disposal to block and expose this uncompetitive conduct. Mass will continuously report to the public Elekta's ongoing behavior.”
Smith added that “it should be noted we have tried to communicate with Elekta. Such a lawsuit is only necessary against companies when their management refuse to engage in a professional dialogue and when there is no corporate governance practiced by its board of directors.”
Peter Ejemyr, vice president of communications of the Sweden-based Elekta said in a statement released Monday, “We knew nothing about this, their press release came like a bolt out of the blue to us.”
Ejemyr said the company “has had no business or technological relationship with Hong Kong-based Mass Financial, which earlier today issued a press release asserting it is suing the Swedish company for breach of contract with its subsidiary, VSM MedTech.”
“We have no idea what this is about. We haven't received a lawsuit, all that we have seen is the press release, which is very vague,” he added.
VSM MedTech manufactures and markets medical devices for the diagnosis and treatment of neurological disorders, according to Mass Financial.