Co-Founders, Board Members Allegedly Looted Palmaz Scientific Before Declaring Bankruptcy Last Year
A trustee in the bankruptcy proceedings for Palmaz Scientific Inc. last week sued its co-founders and members of its board, alleging that they looted the company before declaring bankruptcy last year.
Co-founded by coronary stent pioneer Dr. Julio Palmaz and CEO Steven Solomon in 2008 to commercialize Palmaz’s ideas, PSI raised about $40 million before pulling the plug in a year ago.
The company told its shareholders in August 2015 that Palmaz planned to resign as chairman in favor of former Kinetic Concepts Inc. CEO Cathy Burzik; serving as interim CEO, Burzik was to have helped find a replacement for Solomon and land a cash infusion backed by Targeted Technology, where she is an operating partner. Palmaz was to have remained as chief scientific officer.
Co-founded by coronary stent pioneer Dr. Julio Palmaz and CEO Steven Solomon in 2008 to commercialize Palmaz’s ideas, PSI raised about $40 million before pulling the plug in a year ago.
The company told its shareholders in August 2015 that Palmaz planned to resign as chairman in favor of former Kinetic Concepts Inc. CEO Cathy Burzik; serving as interim CEO, Burzik was to have helped find a replacement for Solomon and land a cash infusion backed by Targeted Technology, where she is an operating partner. Palmaz was to have remained as chief scientific officer.