The Supreme Court of New York ruled that the guarantees by related entities of Wellstat Diagnostics, LLC are valid and enforceable in relation to a $44.1 million loan agreement with PDL BioPharma Inc.
In the summary judgment the Supreme Court of New York, County of New York, Commercial Division, ruled that Wellstat Diagnostics guarantors are accountable for the amount owed under the loan agreement.
The judgement resolves a dispute arising from Wellstat Diagnostics defaulting on loans made to the company by PDL BioPharma in August 2013.
Additionally, the court ordered a damages inquiry before a special referee to calculate the amount owed under the loan agreement. Incline Village, Nev.-based PDL BioPharma expects to recover the full amount due under the terms of the loan.
Wellstat Diagnostics' guarantors have 30 days to appeal the court's decision.
