St. Jude Medical sues AorTech, wins injunction

November 8, 2012 by MassDevice staff

Medical device company St. Jude Medical sues AorTech, the Scottish company that makes the Optim insulation for its next-generation Durata pacemaker leads, winning an injunction against the termination of their supply deal.

St. Jude Medical

St. Jude Medical (NYSE:STJ) won an injunction against the Scottish firm that makes the insulation for its next-generation Durata pacemaker leads, AorTech International (LON:AOR), which had accused the medical device company of breaching their contract and threatened to terminate the deal.

St. Jude sued Glasgow-based AorTech Oct. 16 in the U.S. District Court for Central California, asking Judge Dolly Gee to bar AorTech from cutting off STJ's supply of the material used to make the lead insulation, which it calls Optim.

Last month AorTech filed a "rectification notice" against the St. Paul-based medical device company, accusing it of "material breaches" of their deal. AorTech alleged that St. Jude submitted "excessive supply orders intended to cause AorTech to default on its supply obligations" and broke their asset purchase agreement "by entering into an employment agreement with an AorTech employee at his request," according to court documents.

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