Elekta (STO:EKTA B) and Varian Medical Systems (NYSE:VAR) settled a lawsuit accusing the Swedish medical device company of stealing trade secrets when it poached sales reps from its U.S. rival Varian.
Varian sued Elekta last year in a Texas state court, accusing the Stockholm-based radiological device maker of swiping proprietary information when it lured a pair of sales reps away from Palo Alto-based Varian.
Today, alongside its annual report, Elekta said that the legal spat between the arch-rivals "has been resolved by mutual agreement by the parties."
Elekta’s director of investor relations, Johan Andersson, declined further comment. Varian representatives did not immediately return emails seeking comment.
Earlier this year, the Centers for Medicare & Medicaid Services stepped in to level the playing field between Elekta and Varian. Under the proposal, Medicare would offer equal payment to healthcare providers conducting single-treatment radiosurgery for brain tumors, whether the procedure is conducted with Elekta’s Gamma Knife or Varian’s Linac.
The decision would reverse a 2012 measure, supported by Senate Majority Leader Harry Reid (D-Nev.), which would cut payments for Elekta’s technology.
Elekta reported (PDF) profits of about $206.5 million (kr 1.35 billion), or 54¢ per share (kr 3.52), on sales of $1.58 billion (kr 10.34 billion) for the 12 months ended April 30. That represents bottom-ling growth of 10.0% on sales growth of 14.3%.