Benzinga | Nov 2, 2020 07:45AM EST

Prevail Therapeutics Announces Victory In Arbitration Brought By Alector Against Prevail's CEO; Says Arbitrator 'rejected all of Alector's principal claims against Dr. Abeliovich, including all claims alleging misappropriation or misuse of trade secrets'

NEW YORK, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Prevail Therapeutics Inc. (NASDAQ:PRVL), a biotechnology company developing potentially disease-modifying AAV-based gene therapies for patients with neurodegenerative diseases,NEW YORK, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Prevail Therapeutics Inc. (NASDAQ:PRVL), a biotechnology company developing potentially disease-modifying AAV-based gene therapies for patients with neurodegenerative diseases, today announced a decisive victory in the arbitration proceeding brought in 2019 by Alector Inc. against Prevail's founder and Chief Executive Officer, Asa Abeliovich, M.D., Ph.D.



The arbitrator rejected all of Alector's principal claims against Dr. Abeliovich, including all claims alleging misappropriation or misuse of trade secrets. Significantly, the arbitrator rejected Alector's claims that Dr. Abeliovich used Alector trade secrets or confidential information in connection with his work on behalf of Prevail, as well as Alector's claim that it has rights to Prevail's patents and patent applications. Prevail was not a party to this arbitration.

"We appreciate the arbitrator's thorough and independent review of this matter. This decision vindicates Dr. Abeliovich and rules in his favor on all significant issues," said Francois Nader, M.D., Non-Executive Chairman of Prevail. "With this positive outcome, Prevail is looking forward to advancing our pipeline for the benefit of patients."

"I am pleased with the decision, which confirms Prevail's ownership of its intellectual property," said Dr. Abeliovich. "Our team continues to advance our pipeline and remains committed to our critical mission of developing novel, urgently needed therapies for patients with neurodegenerative disorders such as Parkinson's disease and frontotemporal dementia."

The only relief granted to Alector by the arbitrator was permission to seek reimbursement for a portion of Alector's out-of-pocket costs and fees in connection with certain document retention-related claims. Alector will need to provide sufficient proof of such amounts.