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Contingencies (Details Narrative 3) (USD $)
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6 Months Ended |
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Jun. 30, 2013
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Litigation filed by Aphena Pharma Solutions – Maryland, LLC f/k/a Celeste Contract Packaging, LLC
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| Loss Contingencies [Line Items] | |
| Name of Plaintiff | Aphena Pharma Solutions – Maryland, LLC f/k/a Celeste Contract Packaging, LLC |
| Name of Defendant | BioZone Laboratories, Inc. and BioZone Pharmaceuticals, Inc. and Daniel Fisher |
| Domicile of Litigation | DISTRICT COURT FOR THE DISTRICT OF MARYLAND NORTHERN DIVISION |
| Case Number | Case 1:12-cv-00852-WDQ |
| Lawsuit Filing Date | 19-Mar-12 |
| Allegations | Alleges breach of contract and other commercial wrongdoing in connection with a single purchase order issued during early 2010 relating to the development of certain over the counter products to treat cough and cold symptoms. |
| Damages Sought |
We are unable to provide an estimate of the amount or range of reasonable possible losses from this litigation because, among other reasons, the complaint does not set forth a monetary demand. |
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Litigation filed by Daniel Fisher
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| Loss Contingencies [Line Items] | |
| Name of Plaintiff | Daniel Fisher |
| Name of Defendant | BiZone Pharmaceuticals, Inc., Elliot Maza, Brauser Honig Frost Group, Michael Brauser, Barry Honig, and The Frost Group LLC |
| Domicile of Litigation | United States District Court, Northern District of California |
| Case Number | No. 12-03716 |
| Lawsuit Filing Date | 16-Jul-12 |
| Allegations |
Fisher asserts claims for breach of contract, conversion, wrongful termination, and unjust enrichment, and violation of the federal whistleblower statute arising from his former role as an officer and director of the Company and certain contractual agreements that he entered into with the Company. |
| Damages Sought, Value | $ 23,000,000 |
| Actions Taken by Defendant |
On April 19, 2013, the Company and its co-defendants in the Fisher Action entered into a settlement with Fisher resolving the dispute. The Company, despite what it perceived as valid defenses to enforcement, agreed to honor, in full, the terms of Fisher’s Employment and Stock Purchase Agreements. The Company, inter alia, agreed to convey the total consideration for Fisher’s interest in the BioZone Labs Group as well as the balance of the consideration under Fisher’s Employment Agreement. In return, the Company is obtaining a dismissal of the Fisher Action, a full general release, and will release Fisher as against claims the Company had against him. Upon completion of the settlement agreement and Board approval of the same, the Company will disclose the complete settlement terms in a subsequent filing. |
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Litigation filed by BioZone Pharmaceuticals, Inc
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| Loss Contingencies [Line Items] | |
| Name of Plaintiff | BioZone Pharmaceuticals, Inc |
| Name of Defendant | Daniel Fisher and 580 Garcia Properties, LLC |
| Domicile of Litigation | Supreme Court of the State of New York, County of New York |
| Case Number | No. 652489/2012 |
| Lawsuit Filing Date | 18-Jul-12 |
| Allegations | Alleging breach of contract, breach of fiduciary duty, negligence, and fraud claims arising from Fisher’s former role as an officer and director of the company |
| Damages Sought | The Company is seeking $2 million in damages, together with the cancellation of 6.65 million shares of the Company’s stock, and Fisher’s forfeiture of property located at 580 Garcia Avenue, Pittsburg, CA, which property is used by the Company as a warehouse facility. |
| Actions Taken by Defendant |
This suit was dismissed on April 19, 2013 as part of the settlement of the Fisher Action disclosed above. |