UNS 0.00% 0.5¢ unilife corporation

Did anyone hear, read, or comprehend, the answer regarding the...

  1. 447 Posts.
    Did anyone hear, read, or comprehend, the answer regarding the Forbes piece?


    Keith Albert Markey - Griffin Securities, Inc., Research Division

    Just wondering if you could comment on the recent Forbes articles. We've certainly seen their effect on your stock price, and I'd like to hear it from you.

    Alan D. Shortall - Chief Executive Officer, Executive Director, Member of Strategic Partnerships Committee and Chief Executive Officer of UMSL

    Yes. Keith, thank you. Obviously, very disappointing. And I hate to dignify what I believe is a malicious piece of journalism from a reporter with little life experience due to his youth or business experience, with any comment at all. However, I perceive both articles as a vindictive attack on me personally as well as the company and all of its followers and supporters. I'm amazed by the arrogance of this young reporter, in fact. The articles as written are a slap in the face to you and some of Wall Street's top analysts and I'm including you in that, Keith, obviously, and some of the world's savviest portfolio managers, many of which are on this call. Both articles contain numerous misrepresentations of fact, misleading statements and serious inaccuracies regarding Unilife and myself as CEO. We sought to correct these errors and the statements with Forbes in advance of publication of the first article, but they chose to print the original, inaccurate and misleading content regardless. The second article, which appears to have been rushed to publication, just as the market began to digest the significance of our contract with Sanofi, it's -- that's of greater concern to Unilife and to me, notwithstanding the malicious personal attack on myself and Ramin's character or the fact that we were given virtually no opportunity for fact checking, we must question why Forbes was in such a rush to publish an article riddled with typos and grammatical errors within hours of us making the biggest announcement in our history. The article takes allegations from a former employee that was fired for cause and spins them as if they are facts. Given the content and timing of this second article, the Board of Directors and I feel that this was a calculated attack on Unilife, and we are investigating this matter and the motivations and factors behind it. But let me say this just to finish on that piece. If the Forbes article raised even a shred of a doubt about Unilife, its operations or mine or Ramin's business ethics, we are more than happy to host you and any other analysts or any of our investors to Pennsylvania at our facilities where we'll answer any questions. We are very transparent and an open book. As a matter of fact, we are planning to host an event for analysts, which we had to cancel earlier this year at our York facility in the coming months. And we're very proud of what we've come accomplished. And we have nothing to hide from our shareholders, customers or constituents. And these allegations from Smith that was -- had to stood down originally and asked to take 7 days leave while he stood down from his position to see if we could actually find a position for him within the organization, it's not a coincidence that 4 days later we received an anonymous complaint, an anonymous complaint, to which we actually thought came from somebody else. And then when we did terminate him 4 or 5 weeks later, we were then approached on the basis that we've fired him because he was a whistleblower. Now, the interesting thing is of the 4 or 5 weeks before that anonymous complaint with these allegations -- unfounded allegations come in, 4 or 5 weeks beforehand, as part of our corporate governance, which is very stringent, we got our executives to sign off before we do our earnings release, to sign off that as far as their judgment, they certify that there's no fraud or no issues in the company to which they believe that we should have informed the market. And he certified 4 to 5 weeks before that anonymous complaint saying that there was nothing to his [indiscernible]. So either it was a -- and my opinion, personally, he was actually fully misleading us when he signed that, that he believes it, or else on the alternative, when he actually put in the anonymous complaint. And we refused -- there was a -- we refused to what I believe was an extortion of money and we refused to pay it, to the extend with the threat of this public release of this information and that will give you how strongly I feel about it and how -- the fact is I have no concern because we've got containers load of documents to prove that what he says is actually malicious lies. So from that point of view, I could have settled for probably $120,000, $130,000, got him to sign a confidentiality agreement and got him to go away. I wouldn't do it. I won't have somebody extort money from us, I'd rather have it in the public arena and show just how robust our corporate governance is. And the FDA came in, in May with 4 days, with 2 auditors and they went through all our quality systems, to which most of the allegations relate to our quality and regulatory issues, and the FDA had no findings. In fact, in the final sign-off, they said to me that our quality system was exemplary for a medical device company. So that's it. You asked a simple question, Keith, I'm sorry.
 
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