UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
SEPTEMBER 4, 2007 (AUGUST 30, 2007)
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
COMPETITIVE TECHNOLOGIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
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(STATE OR OTHER JURISDICTION OF INCORPORATION)
1-8696 36-2664428
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(COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.)
777 COMMERCE DRIVE, SUITE 100, FAIRFIELD, CONNECTICUT 06825
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)(ZIP CODE)
(203) 368-6044
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
N/A
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 8.01 OTHER EVENTS
On August 30, Competitive Technologies, Inc. issued the following press release:
COMPETITIVE TECHNOLOGIES FILES LAWSUIT
AGAINST BEN MARCOVITCH AND OTHER CO-DEFENDANTS
FAIRFIELD, CT - (AUGUST 31, 2007) - COMPETITIVE TECHNOLOGIES, INC. (AMEX: CTT)
announced that it filed a Federal complaint today against former CTT Director
Ben Marcovitch and other co-defendants. Mr. Marcovitch was removed from CTT's
Board of Directors on August 8, 2007 by unanimous vote of CTT's five Directors
for violating CTT's Code of Conduct. At that time, CTT also withdrew from its
involvement with Agrofrut, a nutraceutical firm brought to CTT by Mr.
Marcovitch. Others named in the suit are Betty Rios Valencia, President and CEO
of Agrofrut and former spouse of Mr. Marcovitch, John Derek Elwin, III, a former
CTT employee, and Agrofrut, E.U. The suit was filed in the U.S. District Court
for the District of Connecticut. In its lawsuit, CTT requests, among other
relief, punitive damages and attorneys' fees.
"We state in our complaint that these parties conspired to loot the company's
treasury," said John B. Nano, CTT's Chairman, President and CEO. "Our
investigation has determined that these parties have been subject to similar
allegations for past dealings. We have analyzed these issues, presenting our
findings in our Federal complaint that contains details that will allow
shareholders to understand the gravity of the charges. It is the opinion of CTT
and the Board of Directors that this lawsuit is required to recover our $750,000
and to settle outstanding issues regarding the named parties. The recent
in-depth due diligence and subsequent investigation by Breen & Associates,
conducted prior to Mr. Marcovitch's removal from the Board, disclosed several
issues of credibility and raised serious concerns regarding the defendants named
in today's lawsuit."
As announced on August 15, 2007, CTT retained Greenberg Traurig, LLP, an
international law firm, to recover the funds from Agrofrut, and Juan Carlos
Esguerra of the Bogota, Colombia-based law firm, Esguerra, Barrera, Arriaga, to
handle CTT's affairs in Colombia. Also, as stated, Breen & Associates, an
independent investigative firm, developed evidence that showed that Mr.
Marcovitch and Agrofrut provided CTT's Board of Directors with false and
misleading information in a conspiracy to fraudulently loot CTT's treasury using
the Agrofrut transaction. Included in those findings was the fact that Dr. Raul
Aragon Davalos, listed as an executive of Agrofrut in papers submitted by Mr.
Marcovitch and Agrofrut at a March 28, 2007 CTT Board meeting, had actually been
killed in a drive-by shooting in Cali, Colombia on February 28, 2007. Dr. Raul
Aragon Davalos's assassination was known to Mr. Marcovitch and Ms. Rios
Valencia, as well as to other executives of Agrofrut, but was never revealed to
CTT by them. Mr. Marcovitch had admitted to a CTT outside counsel, and to a CTT
shareholder, that he had attended Dr. Raul Aragon Davalos's funeral. Further,
the investigations have shown that Dr. Raul Aragon Davalos was a convicted drug
trafficker and that Ms. Rios Valencia also has a drug conviction record. Among
other things, the involvement of Ben Marcovitch, Betty Rios Valencia and John
Derek Elwin, III with convicted drug traffickers resulted in CTT's decisive
actions against these individuals.
Mr. Nano added, "We expect to recover the majority of the funds from the
Agrofrut transaction, if not more. CTT continues to move ahead. We are further
developing our interest in the growing nutraceutical industry, including the
glycemic reduction nutraceutical and green tea polyphenol compounds currently in
our portfolio. We are also aggressively marketing our newly acquired
technologies for pain management and stress reduction, and other technologies,
including our HB LEDs, bone biomaterial, cholesterol trapping and regeneration,
and Lupus diagnostic and monitoring, to drive revenue growth, improve
profitability and create shareholder value."
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ABOUT COMPETITIVE TECHNOLOGIES, INC.
Competitive Technologies, established in 1968, is a full service technology
transfer and licensing provider focused on the technology needs of its customers
and transforming those requirements into commercially viable solutions. CTT is a
global leader in identifying, developing and commercializing innovative
technologies in life, electronic, nano, and physical sciences developed by
universities, companies and inventors. CTT maximizes the value of intellectual
assets for the benefit of its customers, clients and shareholders. Visit CTT's
website: www.competitivetech.net
Statements about our future expectations are "forward-looking statements" within
the meaning of applicable Federal Securities Laws, and are not guarantees of
future performance. When used herein, the words "may," "will," "should,"
"anticipate," "believe," "appear," "intend," "plan," "expect," "estimate,"
"approximate," and similar expressions are intended to identify such
forward-looking statements. These statements involve risks and uncertainties
inherent in our business, including those set forth in Item 1A under the caption
"Risk Factors," in our most recent Annual Report on Form 10-K for the year ended
July 31, 2006, filed with the SEC on October 30, 2006, and other filings with
the SEC, and are subject to change at any time. Our actual results could differ
materially from these forward-looking statements. We undertake no obligation to
update publicly any forward-looking statement.
Direct inquiries to: Johnnie D. Johnson, IR Services, LLC
Tel: 860 434 2465
E-mail: jdjohnson@corpirservices.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMPETITIVE TECHNOLOGIES, INC.
(Registrant)
Dated: September 4, 2007 By: /s/John B. Nano
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John B. Nano
Chairman and Chief Executive Officer
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