CEL-SCI updates ongoing arbitration against former CRO
Tuesday, October 10, 2017
CEL-SCI announced that as it nears the conclusion of its arbitration with its former CRO, the company has restructured its agreement with the litigation funding firm Lake Whillans to further incentivize the law firm representing CEL-SCI in the arbitration.
Geert Kersten, CEO of CEL-SCI said, “We are finally near the end of this arbitration. Both Lake Whillans, very experienced in commercial litigation, and CEL-SCI believe that this special incentive to the law firm representing our interests may be very beneficial to our shareholders.”
In 2013, CEL-SCI filed an arbitration seeking $50 million from its former CRO that used to run the company’s phase III head and neck cancer study with Multikine. In October 2015, Lake Whillans Litigation Funding agreed to fund the remaining costs of the arbitration hearing in return for a part of the proceeds from the hearing. Under the 2015 arrangement with Lake Whillans, the first $10 million went to Lake Whillans and any amounts in excess of $10 million would be split 15% to Lake Whillans and 85% to CEL-SCI.
On October 3, 2017, Lake Whillans Litigation Funding and CEL-SCI agreed to give an incentive to the law firm, Wilk Auslander, which is handling the case for CEL-SCI against the former CRO. Pursuant to this new arrangement, Lake Whillans has agreed to reimburse Wilk Auslander up to $250,000 for expenses incurred. In addition, Lake Whillans and CEL-SCI have each agreed to give the law firm of Wilk Auslander 3.75% of the proceeds in excess of $10 million. Therefore, the distribution of the proceeds above $10 million, if awarded, will be 7.5% to Wilk Auslander, 11.25% to Lake Whillans and 81.25% to CEL-SCI.