Healthcare Industry News: embolic protection
News Release - October 31, 2007
ev3 Inc. Announces Agreements in Principle to Settle Patent Litigation
PLYMOUTH, Minn.--(HSMN NewsFeed)--ev3 Inc. (NASDAQ:EVVV ), today announced that the company and its subsidiaries reached agreements in principle to resolve patent infringement and other litigation with The Regents of the University of California and Boston Scientific Corporation. Products involved in the litigation include embolic protection devices and certain detachable embolic coils. The settlements remain subject to negotiation of final written agreements among the parties and the settlement terms with the University of California remain subject to final approval by The Regents of the University of California. The litigation involving the University of California was scheduled to go to trial on October 16, 2007 and has been continued by the court for purposes of permitting the parties to enter into a final written agreement with a status conference set with the court in early December 2007.Under the terms of the agreements in principle, all claims by all parties will be dismissed with prejudice, ev3 will not be required to stop selling any of its existing product lines, ev3 will not be required to make any future royalty payments and ev3 will make a one-time payment of approximately $11.7 million to the University of California and a one-time payment of approximately $3.7 million to Boston Scientific. As a result of the agreements in principle, ev3 has taken a $20.2 million special charge in third quarter 2007 for amounts expected to be paid by ev3 to the parties and attorneys fees and expenses associated with the litigation.
One of the agreements in principle covers litigation involving the parties venued in the United States District Court for the Northern District of California, as well as litigation among the parties venued in Germany and the Netherlands. This litigation includes assertions by the University of California of patent infringement claims against ev3 with respect to a range of patents held by the University of California related to detachable coils and certain delivery systems and assertions by ev3 of non-infringement, invalidity of the patents and inequitable conduct in the procurement of certain patents. In addition, ev3 has asserted violations of federal antitrust laws against the University of California and Boston Scientific Corporation. The other agreement in principle covers litigation between ev3 and Boston Scientific venued in the United States District Court for the District of Minnesota relating to patent infringement claims by each of the parties against the other related to embolic protection devices and a claim by Boston Scientific against ev3 for misappropriation of trade secrets.
About ev3 Inc.
ev3 Inc. is a global medical device company focused on improving the lives of patients with vascular disease through the development of innovative endovascular therapies.
ev3 and the ev3 logo are trademarks of ev3 Inc., registered in the U.S. and other countries. This press release contains other trademarks and trade names of ev3 Inc. and other third parties, which are the property of their respective owners.
Source: ev3
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