A month after Rosetta Genomics Ltd. announced the sale of its spin-off Rosetta Green Ltd. to Monsanto Company, Rosetta Genomics is now suing Monsanto for $35 million. The lawsuit is the result of Rosetta Genomics demanding its share of the sale of Rosetta Green to Monsanto. Rosetta Green claims that the lawsuit is baseless.
Rosetta Green was spun off of Rosetta Genomics in 2008 to use the company’s micro RNA technology for crop bioengineering. The companies parted in 2010 and Rosetta Green went public.
“Rosetta Genomics, which owned almost half of Rosetta Green, later sold its stake for just $900,000, plus up to $2 million in milestone payments, to Plan B Ventures and Alexander Rabinovitch. Rosetta Genomics retained first refusal rights to the sale of the shares to a third party under the founding agreement of Rosetta Green,” according to Globes.co.
“Rosetta Genomics argues that Rosetta Green may not transfer to Monsanto the intellectual property given by Rosetta Genomics when it founded Rosetta Green. It also claims 7.5 percent of the sale proceeds, and that Monsanto should assume Rosetta Green’s liabilities under the licensing agreement with Rosetta Genomics, to which Rosetta Green is bound,” Globes.co reported.
Rosetta Green claims that its software is not being transferred under the sale of its assets to Monsanto. Therefore, Rosetta Genomics would not be entitled to any royalties.