Cardiovascular Systems, Inc. (CSI) (Nasdaq: CSII), announced today that it has entered into a settlement agreement with ev3, Inc., now part of Covidien plc. The agreement dismisses all claims and counterclaims in the employment lawsuit between the two companies. The litigation stems from a suit ev3 originally filed against CSI in 2007 related to employees who joined CSI from ev3.
“Reaching a settlement in this lawsuit is in the best interest of CSI”
Pursuant to the agreement, CSI will pay ev3 $1.0 million, in the form of $750,000 cash and a $250,000 promissory note, due by January 1, 2014. CSI will receive insurance proceeds of $500,000 related to the settlement. Neither party admits any liability or wrongdoing.
"Reaching a settlement in this lawsuit is in the best interest of CSI," said David L. Martin, CSI president and chief executive officer. "By resolving this issue, we can move forward and focus on our business and growth opportunities, without the distractions and expense of prolonged litigation."