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Freeland Systems Sues Kardia Health Systems

Freeland Systems, LLC has filed claims in a lawsuit in Federal district court in Minnesota against Kardia Health Systems of Minneapolis, Minnesota.

Venice, FL, October 22, 2009 --( Freeland Systems, LLC has filed claims in a lawsuit in Federal district court (Case No. 09-cv-02767 (PJS/AJB) in Minnesota against FSL Acquisition Corp., a Minnesota corporation, Kardia Health Systems, Inc., and Gus Chafol of Rochester, Minnesota. Among other items, the lawsuit claims, breach of contract, fraud and conversion by Kardia under an asset purchase agreement executed with Freeland Systems in May, 2008 (

According to the lawsuit, on September 21, 2009, Kardia allegedly defaulted on a significant payment due to Freeland Systems on a promissory note issued by Kardia in connection with the asset purchase agreement. Kardia’s alleged obligation under the promissory note is secured by a security interest granted by Kardia to Freeland Systems in all of the purchased assets. These alleged assets include: Freeland technology, the AccessPoint™ software suite, PACS solutions, PDF interface technology, and the business operations, customer lists, employees, and trade names of the former Freeland System business.

Under the asset purchase agreement’s terms, the alleged payment default has triggered Kardia’s obligation to return all purchased assets to Freeland Systems and Kardia Health Systems is no longer authorized to sell, distribute or market AccessPoint™ products or any other solutions that use Freeland Systems technology.

Kardia Health Systems Inc. is partially owned by The Mayo Clinic Foundation.

About Freeland Systems, LLC

Prior to its asset sale in May 2008, Freeland Systems provided image management and reporting solutions to the cardiology, mobile ultrasound, imaging center, vein clinic and hospital markets and developed and marketed the AccessPoint™ suite of software solutions. Freeland was also an OEM supplier of auto population technology to such companies as Philips, Siemens, and AGFA/Heartlabs.

Freeland Systems plans to reestablish its original business and will launch Freeland Medical IT, a division dedicated exclusively to information technology and customer support. Freeland Systems is also introducing new electronic medical record interface solutions.

Contact Information
Freeland Systems
John Freeland

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