Syneron Medical today rejected all the claims made in a suit which Lumenis (Nasdaq: LUME) filed against it a week ago, calling the lawsuit “entirely baseless, without foundation and frivolous”.
Lumenis, a developer of laser devices for medical applications, filed last Thursday with the Tel Aviv District Court a $30 million lawsuit against Dr. Shimon Eckhouse and Syneron Medical, which Eckhouse founded in July 2000. Eckhouse founded and controlled Lumenis from late 1991 through 1999. Lumenis alleges that Eckhouse and other defendants stole trade secrets and copied technologies from the company.
Syneron Medical today said it would vigorously defend itself and its business interests, adding that its rejection of the suit covered all claims against it and against individuals mentioned in the suit.
Syneron Medical CEO Moshe Mizrahy said, “Lumenis has chosen to compete with Syneron through the courts, rather than to compete in the market. We are confident that neither the medical aesthetic market nor the financial market will accept the unfounded claims of this suit. This strategy of using legal action against competitive companies is not a new one for Lumenis’ current management. We are aware of earlier attempts by Lumenis’ current management to sue its competitors, all of which have consistently failed.”
Syneron says its hair removal and skin renewal systems are based on its proprietary, patented and patent-pending Electro-Optic Synergy (ELOS) technology that combines electrical energy (conducted RF) with optical energy (laser or light). The company claims it spent 15 months developing its proprietary technology and products before it began commercial sales of its first product, the Aurora hair removal system, in early 2002.
Despite the Lumenis suit, Syneron is confident about its position in the market. “We are confident that this frivolous law suit will not influence our existing and potential customers, who are well aware of the unique advantages Syneron systems offer,” Mizrahy stated. “We are committed to our customers, our shareholders, and our employees, and to continuing to pursue our mission to develop and bring to market innovative solutions to medical aesthetic problems. Syneron will continue business as usual in every respect.”
“We call upon Lumenis to solve its business and financial problems through real competition in the market, and not through resorting to unfounded lawsuits, which did not succeed in the past and will not succeed this time, either,” Mizrahy concluded.
Published by Globes [online] - www.globes.co.il - on 19 September, 2002