Cyberonics, Inc., a Houston-based medical device company, recently reported that it has settled a lawsuit for an unspecified sum of money, and a federal court dismissed the litigation in July. The firm faced business litigation from a medical professional who alleged that the company owed him more than $200 million in damages and more than $600,000 in unpaid royalties. The doctor claimed that he should have received royalties on patents the company was using in its manufactured products. The parties reached a resolution in the case with the help of legal counsel.
Some of the terms of the settlement were released. The doctor agreed that he will receive royalties due him for products sold before his patent expires, once he provides an accounting of those monies. However, he will not receive royalties on any products the company sells once the patent expires. Cyberonics agreed it would not seek legal fees. No other terms of the settlement were disclosed.
The company is engaged in the manufacture and sale of medical products that help control seizures. It reported an increase of 16 percent in sales from 2012 to 2013 and has more than doubled their sales since 2008.
In business negotiations, disagreements can mean legal complications for the involved parties. When a company is faced with a business dispute, it may need outside help in order to resolve existing differences. A Texas attorney with experience in business and commercial matters might be able to help a client come to an acceptable resolution on favorable terms. If a matter can't be settled, such an attorney might suggest litigation as a means of obtaining a favorable outcome for a client.
Source: Houston Business Journal, "Local medical device company nabs new executive, settles litigation", Bayan Raji, September 12, 2013