LAIYANG, China, Feb. 9 /PRNewswire-Asia-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GNPH) ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced that the American Arbitration Association ("AAA") rendered a decision rejecting requests by Capital Research Group, Inc. ("CRG") to award it $13.8 million and by Capital Research Group Partners, Inc. ("CRGP") to award it $13.7 million related to an alleged breach of three consulting agreements.
On February 2, 2009, after the arbitration panel heard CRG and CRGP's claims, and Genesis' counterclaims, the panel awarded a net total of $980,070.50 to CRG and CRGP jointly, representing less than four percent (4%) of the damages sought by Claimants. The AAA also denied the Claimants' requests for costs and pre-judgment interest, stating that once the award was satisfied, CRG and CRGP would have no further claims against Genesis stock or other property that were the subject of the arbitration.
A few days before the decision by the AAA, all remaining demands for arbitration filed against Genesis by related parties China West, LLC and China West II, LLC were withdrawn.
"While we are disappointed that any damages would be levied against the Company, we believe that this outcome has resulted in minimal negative impact on Genesis," said Mr. Wubo Cao, CEO of Genesis. "The successful defense of CRG and CRGP's claims, along with the withdrawal by China West and China West II of their remaining demands for arbitration will allow us to once again turn our full attention to managing and growing Genesis."
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged
in the research, development, production, marketing and sales of
pharmaceutical products in the Peo
|SOURCE Genesis Pharmaceuticals Enterprises, Inc.|
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