Exhibit 99.2
DATE: August 14, 2001
FROM: FOR:
Padilla Speer Beardsley Inc. MEDTOX Scientific, Inc.
224 Franklin Avenue West 402 West County Road D
Minneapolis, MN 55404 St. Paul, MN 55112
John Mackay (612) 871-8877 Richard J. Braun (877) 715-7236
FOR IMMEDIATE RELEASE
MEDTOX ANNOUNCES FAVORABLE RULING
IN SHORT-SWING PROFITS LITIGATION
Morgan Says It Will Pay MEDTOX Cash To Satisfy Judgment;
Could Total More Than $700,000
ST. PAUL, Minn., August 14, 2001 - MEDTOX Scientific, Inc. (AMEX-TOX), announced
that the United States Court of Appeals for the Eighth Circuit ruled in favor of
MEDTOX on August 3, 2001 in the company's lawsuit against Morgan Capital LLC
under Section 16(b) of the Securities Exchange Act of 1934. The Appeals Court
affirmed the United States District Court decision awarding MEDTOX $675,000 in
the short-swing profits case. Morgan Capital LLC was found to have engaged in
prohibited short-swing purchases and sales of MEDTOX's stock in 1996 and is
required to disgorge its profits to MEDTOX. The ruling of the United States
Court of Appeals can be accessed at http://www.ca8.uscourts.gov/opndir/01/08/
003719P.pdf. To access this file, you will need acrobat 4.0 or higher.
Under an Escrow Agreement between MEDTOX and Morgan Capital, 72,500 shares
of MEDTOX's common stock owned by Morgan Capital were escrowed as collateral to
secure the District Court judgment. Morgan Capital has notified MEDTOX, pursuant
to the Escrow Agreement, that it intends to pay MEDTOX cash to satisfy the
judgment which, including post-judgment interest, exceeds $709,000.
Richard Braun, MEDTOX's chief executive officer said, "We are pleased by
the Appeal Court's decision. We believed that the trading in question violated
Section 16(b) and it was incumbent upon MEDTOX to seek a recovery of the
short-swing profits."
MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of
high quality specialized laboratory services and on-site/ point-of-testing
devices. The company also supports customers with complete logistics, data and
program management services. MEDTOX develops and manufactures diagnostic devices
for quick and economical on-site/ point-of-test analysis for drugs of abuse,
therapeutic drugs and agricultural toxins and provides employment drug screening
and occupational health testing. MEDTOX is also a leader in providing esoteric
toxicology services to hospitals and laboratories nationwide. MEDTOX's Clinical
Trials Services division specializes in three key areas: central laboratory
testing services for clinical trials, bio-analytical services for new drug
development and diagnostic drug screening programs for use in clinical trials.
To be automatically alerted by e-mail about company information, please go to
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=tox&script=1900 and
follow the directions on the page. For more information see
http://www.medtox.com.
Note: Forward-looking statements contained in this press release are made
under the Private Securities Reform Act of 1995. Actual results may differ due
to a number of factors including a change in the employment pattern of client
companies, the ability of MEDTOX to acquire new business, and changes in the
competitive environment. A fuller discussion of factors that may cause such
results to differ are identified on page three of the company's 2000 annual
report on Form 10-K and incorporated herein by reference.
# # #