Legal Proceedings

6 Months Ended

Jun. 30, 2011

Legal Proceedings [Abstract]

Legal Proceedings

9. Legal Proceedings

On November 25, 2008 plaintiffs Kenton L. Crowley and John A. Flores filed a complaint against EpiCept in the United States District Court, New Jersey, which was transferred on March 20, 2009 to the United States District Court for the Southern District of California. The complaint alleges breach of contract, breach of covenant of good faith and fair dealing, fraud, and rescission of contract with respect to the development of a topical cream containing ketamine and butamben, known as EpiCept NP-2. Discovery was conducted in 2010 and 2011 and is now complete. The Company filed a motion for summary judgment on April 29, 2011. The Company believes this complaint is entirely without merit, but as the complaint may go to trial in late 2011, it has recorded a reserve of approximately $0.2 million to cover any potential liability.