Ongoing Employee Litigation Keeps Next Science’s Legal Risks in Focus

Derivative Complaint Dismissed in Florida Court

Next Science Limited (ASX: NXS) has announced a significant legal victory with the dismissal of a derivative complaint filed by Michael Morello in the Duval County Florida Circuit Court. The court ruled the complaint lacked standing, effectively ending this particular legal challenge against the company. This dismissal follows an earlier announcement in January 2025, marking a positive development in Next Science’s ongoing legal affairs.

Ongoing Litigation Against Former Employees

Despite this win, Next Science continues to pursue litigation against several former employees accused of breaching post-employment restraints. These legal actions underscore the company’s commitment to protecting its intellectual property and commercial interests, particularly as it seeks to safeguard its proprietary XBIO™ technology. The outcomes of these cases remain pending, and they could have implications for the company’s operational stability and reputation.

Focus on XBIO™ Technology and Market Position

Next Science is a medical technology company headquartered in Sydney, Australia, with a research and development centre in Florida, USA. Established in 2012, the company’s core focus is the development and commercialization of XBIO™ technology, a patented, non-toxic solution designed to eradicate biofilm-based infections. This technology addresses a critical healthcare challenge, as biofilms contribute significantly to persistent infections that are difficult to treat with conventional methods.

The company owns 100% of the intellectual property related to XBIO™, which is protected by patents. This strong IP position is central to Next Science’s strategy and underpins its ongoing efforts to expand the commercial reach of its products. The legal disputes involving former employees may be viewed in this context, as Next Science seeks to maintain control over its proprietary innovations.

Implications for Investors and Market Observers

While the dismissal of the derivative complaint reduces one layer of legal risk, the continuation of litigation against former employees keeps a degree of uncertainty in play. Investors will be watching closely for any financial disclosures related to these legal proceedings, including potential costs or settlements. In addition, the company’s ability to protect its intellectual property rights is critical to sustaining its competitive advantage in the medical technology sector.

Next Science’s announcement also includes standard forward-looking statements cautioning investors about the inherent uncertainties and risks involved. The company’s management, led by CEO and Managing Director Françoise Dixon, remains focused on advancing its technology and navigating the legal landscape to support long-term growth.