Contingencies

9 Months Ended

Mar. 31, 2012

Contingencies

Contingencies

Note 9.  Contingencies

In January 2010, the Company initiated an arbitration proceeding against Olive Healthcare (“Olive”) for damages arising out of Olive’s delivery of defective soft-gel prenatal vitamin capsules.  The Company seeks damages in excess of $3.5 million. Olive has denied liability and filed a counterclaim in February 2010 for breach of contract.  The arbitration proceeding is in the discovery phase and is scheduled to be heard in June 2012.  Olive also filed a lawsuit against the Company in December 2010 in Daman, India seeking to enjoin the United States arbitration and claiming damages of approximately $6.8 million for compensatory damages and an additional approximately $6.8 million for loss of business.  The Company has engaged Indian counsel and is actively defending that suit.  On October 13, 2011 the Indian court dismissed the lawsuit brought by Olive.  Thereafter, Olive filed a Writ Petition with Bombay High Court seeking to reverse the decision of the court in Daman, India, which dismissed Olive’s lawsuit.  The Bombay High Court heard argument on the matter in January 2012.  On March 7, 2012, the Bombay High Court issued its ruling, affirming the decision of the court in Daman, India and dismissing the Olive lawsuit.  On or about April 2, 2012, Olive filed a Special Leave Petition with the Indian Supreme Court, challenging the ruling of the Bombay High Court.  The Indian Supreme Court has not yet taken up the matter.