In this complaint, the operator of a New York City sperm bank claims he was libeled by New York Magazine in an article entitled "The Sperm King." In the article, the operater is quoted calling state-mandated employee certification a "joke" and describing himself as being "above the law."

SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK

JOSEPH FELDSCHUH, M.D. and DAXOR CORPORATION 

Plaintiff,

-against-

AMY CLYDE and K-III CORPORATION as owner and Publisher of "NEW YORK
MAGAZINE" 

Defendants.

Index No.

Verified Complaint

Plaintiffs JOSEPH FELDSCHUH, M.D. and DAXOR CORPORATION, by and
through their attorneys Schneider, Harris & Harris, with offices at
1015 Broadway, Woodmere, New York, as a complaint against the
Defendants, state and allege as follows: 

1. DAXOR CORPORATION is a domestic corporation existing pursuant to
the laws of the State of New York, with its principal place of
business at 350 Fifth Avenue, Suite 7120, New York, New York 10118. 

2. DAXOR CORPORATION is publicly traded on the American Stock
Exchange. 

3. IDANT LABORATORIES is a division of DAXOR CORPORATION, (formed and
existing under the laws of the State of New York) and having its
principal place of business at 350 Fifth Avenue, Suite 7120, New York,
New York 10118. IDANT operates a clinical laboratory, a sperm bank and
a blood bank. 

4. JOSEPH FELDSCHUH, M.D. is the President and majority Shareholder of
DAXOR CORPORATION. 

5. DR. FELDSCHUH is the Laboratory Director at IDANT. 

6. Upon information and belief, and at all times alleged herein, AMY
CLYDE was a citizen of the State of New York and was an agent and/or
servant of K-III MAGAZINE CORPORATION as a writer. 

7. Upon information and belief, and at all times alleged herein,
Defendant K-III MAGAZINE CORPORATION (hereinafter referred to as
K-III) was a domestic corporation, incorporated by the laws of the
State of New York and is the owner and publisher of New York Magazine.


8. Upon information and belief, and at all times alleged herein,
Defendant K-III is a foreign corporation licensed to do business in
New York State and is the owner and publisher of New York Magazine. 

9. Upon information and belief, Defendant K-III is a foreign
corporation doing business in New York State and is the owner and
publisher of New York Magazine. 

10. Upon information and belief, and at all times alleged herein,
Defendant K-III employed Defendant CLYDE. 

11. Upon information and belief, and at all times alleged herein,
Defendant CLYDE was a free lance writer who accepted an assignment
from Defendant K-III to write about DAXOR and Dr. FELDSCHUH. 

12. At all times mentioned, the Defendant K-III was and still is the
owner and the publisher of a certain magazine known as "New York
Magazine" published in the City of New York, New York and in general
circulation there and throughout the State of New York and other
nearby states. 

13. That in the April 3, 1995 issue of "New York Magazine," the
Defendant K-III Corporation published an article, written by Defendant
CLYDE entitled "The Sperm King." 

14. The article was false and defamatory. 

15. The article, entitled "The Sperm King" sought to discredit DR.
FELDSCHUH and DAXOR and hold them out for ridicule and humiliation. 

16. The article, deliberately and falsely portrayed DR. FELDSCHUH as a
person who believes he is above the law and not bound to obey the law
and lawful regulations. 

17. Specifically, on page 39, column one, Defendant CLYDE wrote, and
Defendant K-III published the following: "He loves to argue, and he
seems to believe that he's somehow above the law. "At one point, I
asked him why his semen analysis employees weren't certified in the
past. "'The people who worked here were receiving training from me,'
said FELDSCHUH. 'The certificates were irrelevant. To say these
employees need certificates of qualification is a joke." 

18. The above excerpt from the Defendant CLYDE's article was a
fabrication and deliberate misquote, deliberately twisted out of
context and done to support Defendants' plan and scheme against the
Plaintiffs. 

19. DR. FELDSCHUH did have a conversation with Defendant CLYDE on
March 2, 1995 concerning certificates. DR. FELDSCHUH explained that
until 1989, despite years of his lobbying, there was no State
regulation in place covering certification of semen analysis. He
explained that he pioneered the methodology now used throughout the
country. "The methodology, the technology that later was used around
the country for banks was developed right here. The people who worked
in the sperm bank were trained, basically by me." 

20. DR. FELDSCHUH then went on to explain that in 1988 a City Health
Inspector decided that semen analysis certificates were needed. "Since
there was no category (as semen analysis in the New York City Health
Code) that they should be listed under urine analysis. Now, how being
qualified to do a urine analysis would qualify you to do a semen
analysis is rather bizarre because there is no connection between the
ability to do an accurate urine analysis and the ability to do a semen
analysis; none whatsoever." 

21. Defendant CLYDE then asked the following: "So you seem to be
saying that those COQ's, those certificates that the city originally
wanted your employees to have would have been irrelevant." 

22. DR. FELDSCHUH replied that he believed requiring urine analysis
certification to perform semen analysis "was a joke." 

23. In the April 3, 1995 article, Defendant CLYDE wrote that Dr.
FELDSCHUH referred to the sperm collection room as an "ejaculatorium."
Such statement was false and never made by DR. FELDSCHUH. 

24. In the April 3, 1995 article, Defendant CLYDE wrote and Defendant
K-III published the following false and untruthful statement, "DAXOR
employees had told State Investigators that at FELDSCHUH's direction
they made false entries on official business records and lied to
investigators in sworn statement." 

25. Such statement was false.

26. At the time the Defendant K-III published the defamatory matter,
Defendant K-III knew that Defendant CLYDE had written a false and
defamatory article. Defendant K-III then failed to take the proper
steps to ascertain its accuracy and instead published it. 

27. In writing and publishing this false and defamatory matter,
Defendant CLYDE was motivated by actual malice and wrongfully and
willfully intended by this publication to injure the Plaintiffs. 

AS AND FOR A FIRST CAUSE OF ACTION AGAINST DEFENDANT K-III ON BEHALF
OF DR. FELDSCHUH 

28. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
27 with all force and effect as if alleged again herein. 

29. Defendant K-III failed to take the proper steps to ascertain the
accuracy of the "Sperm King" article and instead published it with
reckless disregard of whether it was true or not. 

32. By reason of this publication, Dr. FELDSCHUH was greatly injured
in character and reputation, and suffered great pain and mental
anguish, all to his damage in an amount not less than Fifteen Million
($15,000,000.00) Dollars. 

33. Due to the wanton and reckless disregard for the truth displayed
by Defendants K-III by its publication of the "Sperm King" article,
Dr. FELDSCHUH demands punitive damages in the amount of Ten Million
($10,000,000.00) Dollars. 

AS AND FOR A SECOND CAUSE OF ACTION AGAINST THE DEFENDANT K-III ON
BEHALF OF DR. FELDSCHUH 

34. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
33 with all force and effect as if alleged again herein. 

35. The Defendant K-III instructed Defendant CLYDE to write the "Sperm
King" article for publication in New York Magazine. 

36. K-III, its employers, agents and/or servants knew that the article
as written was false and defamatory. 

37. In publishing this false and defamatory matter, Defendant K-III
was motivated by actual malice and wrongfully and willfully intended
by this publication to injure the Dr. FELDSCHUH 

38. By reason of the publication of the "Sperm King Article", Dr.
FELDSCHUH was greatly injured in character and reputation and suffered
great pain and mental anguish, all to his damage in an amount not less
than fifteen Million Dollars ($15,000,000). 

39. Due to the actual malice displayed by Defendant K-III by its
publication of the "Sperm King" article, an article it knew to be
false and defamatory, and that such publication was due solely to harm
Dr. FELDSCHUH, DR. FELDSCHUH demands punitive damages in the amount of
Ten Million Dollars ($10,000,000). 

AS AND FOR A FIRST CAUSE OF ACTION AGAINST THE DEFENDANT K-III ON
BEHALF THE PLAINTIFF DAXOR 

40. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
39 with all force and effect as if alleged again herein. 

41. Defendant K-III failed to take the proper steps to ascertain the
accuracy of the "Sperm King" article and instead published it with
reckless disregard of whether it was true or not. 

42. As a direct result of the publication of this false and defamatory
article, DAXOR's stock price, as traded on the American Stock
Exchange, dropped significantly. 

43. DAXOR was forced to expend its own monetary resources to
repurchase DAXOR stock and stabilize its price. 

44. As a result of this article, DAXOR lost clients. 

45. By reason of this publication, DAXOR was greatly injured in
character, loss of stock value and reputation, all to its damage in an
amount not less than Fifteen Million ($15,000,000.00) Dollars. 

46. Due to the wanton and reckless disregard for the truth displayed
by Defendants K-III by its publication of the "Sperm King" article
DAXOR demands punitive damages in the amount of Ten Million
($10,000,000.00) Dollars. 

AS AND FOR A SECOND CAUSE OF ACTION AGAINST THE DEFENDANT K-III ON
BEHALF OF PLAINTIFF DAXOR 

47. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
46 with all force and effect as if alleged again herein. 

48. The Defendant K-III instructed Defendant CLYDE to write the "Sperm
King" article for publication in New York Magazine. 

49. K-III, its employers, agents and/or servants knew that the article
as written was false and defamatory. 

50. In publishing this false and defamatory matter, Defendant K-III
was motivated by actual malice and wrongfully and willfully intended
by this publication to injure DAXOR, by misrepresenting and defaming
DR. FELDSCHUH 

51. As a direct result of the publication of this false and defamatory
article, DAXOR's stock price, as traded on the American Stock
Exchange, dropped significantly. 

52. As a result of the article, DAXOR lost clients. 

53. DAXOR was forced to expend its own monetary resources to
repurchase DAXOR stock and stabilize its price. 

54. By reason of the publication of the "Sperm King Article", DAXOR
was greatly injured in character, loss of stock valuation and
reputation all to its damage in an amount not less than Fifteen
Million Dollars ($15,000,000). 

55. Due to the actual malice displayed by Defendant K-III by its
publication of the "Sperm King" article, an article it knew to be
false and defamatory, and that such publication was due solely to harm
DAXOR demands punitive damages in the amount of Ten Million Dollars
($10,000,000). 

AS AND FOR A FIRST CAUSE OF ACTION AGAINST DEFENDANT CLYDE ON BEHALF
OF DR. FELDSCHUH 

56. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
55 with all force and effect as if alleged again herein. 

57. Defendant CLYDE had written a false and defamatory article. She
failed to take the proper steps to ascertain its accuracy and instead
wrote and had published it with reckless disregard of whether it was
true or not. 

58. By reason of this publication, Dr. FELDSCHUH was greatly injured
in character and reputation, and suffered great pain and mental
anguish, all to his damage in an amount not less than Fifteen Million
($15,000,000.00) Dollars. 

59. Due to the wanton and reckless disregard for the truth displayed
by Defendant CLYDE by writing and having published of the "Sperm King"
article DR. FELDSCHUH demands punitive damages in the amount of Ten
Million ($10,000,000.00) Dollars. 

AS AND FOR A SECOND CAUSE OF ACTION AGAINST DEFENDANT CLYDE ON BEHALF
OF DR. FELDSCHUH 

60. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
59 with all force and effect as if alleged again herein. 

61. In writing and publishing this false and defamatory matter,
Defendant CLYDE was motivated by actual malice and wrongfully and
willfully intended by this publication to injure Dr. FELDSCHUH. 

62. The Defendant CLYDE deliberately and maliciously fabricated
quotations and attributed them to DR. FELDSCHUH. 

63. By reason of this publication, Dr. FELDSCHUH was greatly injured
in character and reputation, and suffered great pain and mental
anguish, all to his damage in an amount not less than Fifteen Million
($15 000,000.00) Dollars. 

64. Due to the actual malice displayed by the Defendant CLYDE in her
writing an publication of the "Sperm King" article, which she knew was
false and defamatory and that such publication was due solely to harm
DR. FELDSCHUH and as such DR. FELDSCHUH demands punitive damages in
the amount of Ten Million Dollars ($10,000,000). 

AS AND FOR A FIRST CAUSE OF ACTION AGAINST DEFENDANT CLYDE ON BEHALF
OF PLAINTIFF DAXOR 

65. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
64 with all force and effect as if alleged again herein. 

66. Defendant CLYDE had written a false and defamatory article. She
failed to take the proper steps to ascertain its accuracy and instead
wrote and had published it with reckless disregard of whether it was
true or not. 

67. The Defendant CLYDE by defaming the character and integrity of the
DR. FELDSCHUH, defamed the character and integrity of DAXOR. 

68. As a direct result of the publication of this false and defamatory
article, DAXOR's stock price, as traded on the American Stock
Exchange, dropped significantly. 

69. DAXOR was forced to expend its own monetary resources to
repurchase DAXOR stock and stabilize its price. 

70. As a result of the publication of the article, DAXOR lost clients.


71. By reason of this publication, DAXOR was greatly injured in
character, stock price valuation and reputation all to its damage in
an amount not less than Fifteen Million ($15,000,000.00) Dollars. 

72. Due to the wanton and reckless disregard for the truth displayed
by Defendant CLYDE by writing and having published the "Sperm King"
article DAXOR demands punitive damages in the amount of Ten Million
(10,000,000.00) Dollars. 

AS AND FOR A SECOND CAUSE OF ACTION AGAINST DEFENDANT CLYDE ON BEHALF
OF PLAINTIFF DAXOR 

73. The Plaintiffs repeat, reassert and reallege paragraphs 1 through
72 with all force and effect as if alleged again herein. 

74. In writing and publishing this false and defamatory matter,
Defendant CLYDE was motivated by actual malice and wrongfully and
willfully intended by this publication to injure Dr. FELDSCHUH and
DAXOR 

75. The Defendant CLYDE deliberately and maliciously fabricated
quotations and attributed them to DR. FELDSCHUH. 

76. The Defendant CLYDE by defaming the character and integrity of the
DR. FELDSCHUH, defamed the character and integrity of DAXOR. 

77. As a direct result of the publication of this false and defamatory
article, DAXOR's stock price, as traded on the American Stock
Exchange, dropped significantly. 

78. DAXOR was forced to expend its own monetary resources to
repurchase DAXOR stock and stabilize its price 

79. By reason of this publication, DAXOR was greatly injured in
character, stock price valuation and reputation all to its damage in
an amount not less than Fifteen Million ($15,000,000.00) Dollars. 

80. Due to the actual malice displayed by the Defendant CLYDE in her
writing an publication of the "Sperm King" article, which she knew was
false and defamatory and that such publication was due solely to harm
DR. FELDSCHUH and DAXOR and as such DAXOR demands punitive damages in
the amount of Ten Million Dollars ($10,000 000). 

PRAYER FOR RELIEF

WHEREFORE, Plaintiffs pray that this Court will grant judgment as
against the Defendants: 

As for the cause of action on behalf of DR. JOSEPH FELDSCHUH against
the defendants as follows: 

Fifteen million dollars ($15,000,000) in compensatory damages; Ten
million dollars ($10,000,000) in punitive damages. 

As for the Cause of action on behalf of Plaintiff DAXOR as follows: 

Fifteen million dollars ($15,000,000) in compensatory damages; Ten
million dollars ($10,000,000) in punitive damages. 

Additionally, the Plaintiffs request:

costs and interest as allowed by law and such and further relief as
may to the court seem just and proper. 

Dated: September 11, 1995.

Respectfully Submitted,

Schneider, Harris and Harris
1015 Broadway
Woodmere, New York 11598