* Shareholder group sues co for breach of merger agreement
* Shareholder group seeks punitive, other damages
* Former holders file demand with US arbitration group
Oct 6 (Reuters) - Canada’s Angiotech Pharmaceuticals ANP.TO ANPI.O said former stockholders of Quill Medical Inc, which it acquired in 2006, sued the company for breach of merger agreement and was seeking punitive and other damages.
The stockholder group, QSR Holdings Inc, also made a formal demand to the American Arbitration Association, seeking either direct monetary damages or extension for one calendar year of certain earn-out periods.
Angiotech had bought privately held Quill Medical, a provider of minimally invasive aesthetic surgery and wound closure technology, for $40 million plus certain future contingent payments based on product revenues.
Angiotech is currently focused on the commercialization of Quill SRS, its patented suture product that is key to the company’s drive towards being less dependent on single customers and single products.
Vancouver-based Angiotech, which is a specialty pharmaceutical and medical device maker, has been struggling to improve its liquidity position and is looking to restructure debt. [ID:nN01184575]
Angiotech shares, which faces the risk of being delisted by Nasdaq by Jan. 3, 2011 because they have been below $1 for more than 30 trading days, were flat at 49 Canadian cents Wednesday morning on the Toronto Stock Exchange.
The stock has lost about 20 percent of its value since the company reported a bigger quarterly loss on July 30. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)