Retractable Technologies (NYSE:RVP) said it’s received a $7.7 million payment from Becton Dickinson & Co. (NYSE:BDX) related to a patent infringement lawsuit over their competing safety syringe technologies.
The patent infringement case was split from a lawsuit that also alleged anti-competitive acts on the part of BD.
In September Retractable won a $114 million decision when a federal judge in Texas ruled that BD violated the Lanham Act’s false advertising proscription. The payment announced yesterday in a regulatory filing puts the patent infringement lawsuit to rest.
A federal appeals court decided in July 2011 to reverse an earlier jury finding that both the 1m and 3ml sizes of the BD syringe infringed the Retractable patent, ruling that only the smaller size trespassed on the intellectual property. If BD’s appeal of that ruling results in a determination that it owes less than the $7.7 million, Retractable will return the difference, according to the filing.
"Otherwise, the payment of the judgment amount shall constitute satisfaction of the patent infringement judgment and BD shall owe no further money damages to the company in the patent infringement case," Retractable said in the filing.
The verdict in the antitrust case will prompt Franklin Lakes, N.J.-based BD to set aside about $340 million in pre-tax charges during it fiscal 4th quarter, or about $1.06 per share. Absent that adjustment, the company affirmed its guidance for the full year of 5% growth for the full year and EPS between $5.65 and $5.68. That works out to adjusted EPS of $4.59-$4.62.
BD lost its bid to toss the case after a judge ruled that infringement can constitute anti-competitive behavior.
Retractable sued BD in 2007, alleging that Becton’s Integra syringes infringe patents covering its competing VanishPoint devices. The federal appeals court later denied Retractable’s bid for a re-hearing, setting the stage for an appeal to the U.S. Supreme Court. But the high court refused to hear Retractable’s appeal.