Cochlear (ASX:COH) reports US court upholds $US280m ruling

Cochlear (ASX:COH) says the United States Supreme Court has denied their petition for review of the US Federal Circuit’s decision upholding a Judgment of USD $280 million in patent infringement damages against Cochlear in the lawsuit by the Alfred E. Mann Foundation for Scientific Research (“AMF”) and Advanced Bionics LLC (“AB”).

This was the final appeal that could be taken by Cochlear against the Judgment.

Cochlear paid the full amount of the USD 280 million Judgment to AMF and AB in FY20.

As the patent at issue in the litigation has expired, no further infringement damages can accrue, and this judgment will not disrupt Cochlear’s business or customers in the United States.

On 17 August 2020, Cochlear reached an agreement regarding the settlement of the two remaining issues in this case for USD 75 million.

The settlement of those claims was contingent upon the outcome of Cochlear’s Supreme Court appeal.

Since Cochlear’s Supreme Court appeal is now finished, the agreed settlement amount that was placed into escrow will be paid to AMF and AB and the settlement will be final.

Shares in Cochlear (ASX:COH) are trading 0.3 per cent higher at $196.27.
 
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Source: Finance News Network