LONDON, Ontario & CHICAGO—KGK Synergize Inc. and SourceOne Global Partners LLC announced the settlement of a lawsuit filed by SourceOne in December 2008 in U.S. District Court for the Northern District of Illinois. Details of the settlement are confidential and will remain undisclosed; however, KGK's patents remain valid and enforceable, and SourceOne's Cholesstrinol™ formulations are protected under the patents. Both companies stated they were "pleased to have resolved this matter on business terms in lieu of further protracted litigation."
In late December 2008, Chicago-based SourceOne filed the lawsuit seeking to establish its ingredient Cholesstrinol did not infringe on patents for KGK's Syntrinol®; SourceOne had previously been the exclusive distributor of Sytrinol, but when the rights expired, KGK assigned those rights to Proprietary Nutirtionals. KGK filed a counterclaim and third-party complaint in 2009 alleging SourceOne was guilty of patent infringement and unfair competition.
