Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB) has closed an unsettled invoice from a private investigation company for just over half the bill. The company’s former management had engaged FTI Consulting Inc. to gather data to help defend against an activist shareholder who later replaced the Chief Executive Officer. Prior to settlement, in a court filing, the company argued that it is a matter of rampant and runaway billing.
The details
Navidea mentioned that FTI was engaged on a retainer of just $50,000 and deferred invoices so the firm was not aware how fast bills were adding up, the allegations that FTI denied. The company had reported that the total investigative bill surged over $1 million. FTI sued in NY state court seeking compensation of $783,000 plus interest. However, the settlement closed for $435,000.
As bizarre as it may appear for a firm to keep a watch after one of its directors, it was eventually marked as footnote in 2016’s legal disputes with its ex CEO and previous top lender. The problem began when former Navidea Chief Executive Officer Rick Gonzalez finalized a loan deal with Dallas-based CRG in 2015, then supported the election of Anton Gueth to company’s board, where he was elected as chairman in very short period. Michael Goldberg, a representative and director of the firm’s biggest investor, protested.
The firm later blamed Gueth of channeling confidential data including the investigative information to CRG. In November 2015, the firm engaged FTI to offer research and investigative services intended to enable Navidea to fight against any hostile and/or activist activities by the investment funds and Goldberg. The letter was signed by ex CFO Brent Larson, however the firm has said an email trail indicates that he acted at the command of Gueth and Gonzalez.
Earlier in June, Navidea reported that it has finalized a license and distribution deal with Sayre Therapeutics for the commercialization and development Tc 99m tilmanocept in India. The latter firm specializes in unique treatments and medical equipments commercialization in South Asia. As per the deal terms, the company received an upfront sum and it is eligible to get imminent milestone payments and royalties linked with the sales of Tc 99m tilmanocept in India.
