Item 8.01 Other Material Events

On September 18, 2007, Viral Genetics, Inc. ("Viral Genetics" or the "Company") filed an amended counterclaim with the United States District Court for the Northern District of Illinois, in response to the complaint against the Company filed by Timothy & Thomas, LLC ("T&T") on April 3, 2007.

At the time of the original T&T complaint, the Company stated that it believed the "lawsuit to be part a calculated effort by T&T to extract concessions from Viral Genetics on manufacturing and related product rights on terms that Viral Genetics believes to be disadvantageous and unacceptable to Viral Genetics."

As a result of new information gained during the discovery process of the T&T complaint, Viral Genetics learned new information in connection with the actions of T&T and it's principals.

Consequently, the Company has filed a counterclaim alleging that Timothy & Thomas, LLC, and its principals, Thomas J. Little and Timothy W. Wright, III ("Counterclaim Defendants"), damaged Viral Genetics as a result of fraud, conspiracy to commit fraud, and other unlawful conduct in connection with a scheme to induce Viral Genetics to enter into certain agreements and provide certain authority to them to conduct clinical trials and seek regulatory approval for the Company's investigational drug compound, VGV-1, in Africa as part of a well-orchestrated, sophisticated and bad faith conspiracy to destroy the Company and take over its valuable technology for Counterclaim Defendants' own benefit. The counterclaim alleges that Counterclaim Defendants' actions also constitute breach of contract, breach of fiduciary duties, unfair business practices and interference with contract.

Viral Genetics, Inc. is seeking damages in excess of $10 million.

The full text of the counterclaim is attached hereto as Exhibit 10.1.

Item 9.01 Financial Statements and Exhibits

A copy of the following document is included as an exhibit to this report.

Exhibit No. Description of Document

10.1 Counterclaim