AngioDynamics, a provider of medical devices used by interventional radiologists, nephrologists, and surgeons for the minimally invasive treatment of peripheral vascular disease and cancer,  has entered into a $7 million settlement agreement with Diomed Inc. for the purpose of resolving the patent infringement lawsuit between the companies originally filed in January 2004.

Under the Settlement Agreement with Diomed, all claims and appeals by each side will be dismissed following a $7 million one-time payment to Diomed in full and final satisfaction of the monetary judgment related to the alleged infringement of U.S. Patent No 6,398,777.

Following the March 2007 jury verdict and subsequent monetary judgment award, AngioDynamics recorded a $9.6 million litigation provision in its fiscal third quarter of 2007 and the provision had increased to $10.2 million primarily as a result of interest accrued on the award.  

 “We elected to end what has been a major distraction for our management team at a cost to our company that is less than the amount Diomed was awarded by the judge after the jury verdict in late March of last year,” said Eamonn Hobbs, president and chief executive officer. “As a result of the settlement, we will now have additional cash to invest in the growth of our business.”

On Jan. 6, 2004, Diomed filed an action against AngioDynamics and a codefendant over Diomed’s U.S. patent No. 6,398,777, asserting infringement by AngioDynamics’ VenaCure product line. On March 28, 2007, a jury ruled in favor of Diomed in the Federal District Court in Boston. AngioDynamics had appealed the verdict with the U.S. Court of Appeals, Federal Circuit, and oral arguments were expected to be presented in March or April.
Even though it won the trial court settlement, Diomed filed for bankruptcy protection in March, and is in negotiations to sell the company and its assets. VTN