Artes Medical Broadens Lawsuit to Include Improper Proxy Solicitation Activities...

* Reuters is not responsible for the content in this press release.

Thu Oct 23, 2008 5:30pm EDT

Artes Medical Broadens Lawsuit to Include Improper Proxy Solicitation Activities of Shack and Others Seeking $30 Million in Damages Due to Business Interference and Other Misconduct

SAN DIEGO--(Business Wire)--
Artes Medical Inc. (Nasdaq:ARTE), a medical aesthetics company,
today announced that the Company has amended its current lawsuit
against two former officers and company founders, Stephan and
Gottfried Lemperle, to include claims of improper proxy solicitation
activities and related misconduct by proxy organizer Michael Shack and
others, including former employees of the Company. The Company alleges
in the lawsuit that Shack and other individuals are working in concert
with the defendants in an effort to interfere with the business of the
Company and is seeking $30 million in economic, compensatory and
punitive damages for losses arising out of tortious interference and
other misconduct by these individuals.

   The lawsuit as amended alleges that the misconduct of the
defendants and others working in concert with them includes
inappropriate and damaging contact with the Company's customers and
investors, breach of confidentiality and non-disparagment agreements
with former officers and employees of the Company, coordinated attacks
on the Company's reputation and integrity through the internet and
other communications that violate proxy solicitation rules, conspiracy
with others to file unfounded lawsuits against the Company, all in an
attempt to injure the Company's commercial and financial footing as
well as financing activities and weaken the Company in an effort to
make it easier to gain control without adequately rewarding Artes
Medical shareholders. Through this lawsuit, Artes Medical is seeking
appropriate monetary damages from all responsible parties
participating in these activities. "We intend to bring the full force
of the law against individuals who circumvent appropriate and lawful
business practices to gain an unfair advantage in the marketplace at
the expense of the Company, its officers, directors and stockholders,"
stated Christopher J. Reinhard, Executive Chairman of Artes Medical.

   About Artes Medical, Inc.

   Artes Medical is a medical aesthetics company focused on
developing, manufacturing and commercializing a new category of
aesthetic injectable products for the dermatology and plastic surgery
markets. The Company's flagship product, ArteFill, is being marketed
to men and women as a treatment option for the correction of
nasolabial folds. Additional information about Artes Medical and
ArteFill is available at www.artesmedical.com and www.artefill.com.

   Forward-Looking Statements

   This press release contains forward-looking statements that are
based on the Company's current beliefs and assumptions and on
information currently available to its management and Board of
Directors. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied
by the forward-looking statements. As a result of these risks,
uncertainties and other factors, which include the Company's history
of net losses, its ability to timely raise additional funds to support
its operations and future product acquisition plans, its ability to
manage its operating expenses, its reliance on sales of ArteFill and
Elevess, its future receipt of FDA approval to extend the efficacy
period of ArteFill beyond six months and eliminate the skin test
requirement, and the risk that the Company's revenue projections may
prove incorrect because of unexpected difficulty in generating sales
and market acceptance of ArteFill and Elevess, readers are cautioned
not to place undue reliance on any forward-looking statements included
in this letter to stockholders. A more extensive set of risks and
uncertainties is set forth in the Company's SEC filings available at
www.sec.gov. These forward-looking statements represent beliefs and
assumptions only as of the date of this press release, and the Company
assumes no obligation to update these forward-looking statements
publicly, even if new information becomes available in the future.

   Artes Medical(R) and ArteFill(R) are registered trademarks of
Artes Medical, Inc.

Corporate Media:
Manning, Selvage and Lee
Kate Wilkinson, 323-866-6025
Kate.wilkinson@mslworldwide.com
or
Investor Relations:
Artes Medical, Inc.
Cheryl Monblatt Allen, 858-550-9999
callen@artesmedical.com

Copyright Business Wire 2008
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.