QLT Announces Court Response to Motion to Dismiss and Removal of Case to Fed...( Oral Ruling Issued in Massachusetts G...),Health

Oral Ruling Issued in Massachusetts General Hospital Lawsuit

VANCOUVER, May 21 /PRNewswire-FirstCall/ - QLT Inc. (NASDAQ: QLTI; TSX: QLT) announced that on May 21, 2009, the District Court of Massachusetts ("District Court") issued an oral ruling on QLT's Motion to Dismiss all the claims filed by the General Hospital Corporation, doing business as Massachusetts General Hospital ("MGH") in its lawsuit against QLT. In the oral decision, the District Court dismissed all of the claims filed by MGH except that made under Massachusetts General Law chapter 93A, a consumer protection law which makes "unfair or deceptive acts or practices in the conduct of any trade or commerce" unlawful. QLT's Motion to Dismiss was filed with the District Court on March 17, 2009. We expect that the District Court will formally enter its ruling on the court's docket in the near future.

In the oral decision, the District Court also dismissed MGH's motion to remand the case back to the Superior Court of the Commonwealth of Massachusetts ("Massachusetts State Court"), where MGH had originally filed its complaint.

The decision of the District Court means that MGH can continue its lawsuit against QLT in the District Court only on the claim made under Massachusetts General Law chapter 93A. Under the direction of the District Court, QLT and MGH will now begin to schedule discovery on this claim.

MGH filed its lawsuit against QLT on February 12, 2009, in the Massachusetts State Court. In its complaint, MGH asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, violation of Massachusetts Chapter 93A Sections 2 and 11, unjust enrichment, and for a declaratory judgment.

In essence, MGH alleged that, in 1998, it entered into a written agreement with QLT that (a) called for QLT to pay MGH a royalty of 0.5% o
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