Microbot Medical (Nasdaq: MBOT), the developer of the Liberty endovascular robotic surgical system, announced today that it has settled a years-old lawsuit involving a securities purchase agreement.

Empery Asset Master, Empery Tax Efficient, Empery Tax Efficient II,  and Hudson Bay Master Fund sued Microbot Medical in 2020 in the New York state court in New York County (Manhattan) over a June 2017 securities purchase agreement.

According to Microbot Medical’s telling, the suit claimed that the company had breached multiple representations and warranties — and sought the return of the plaintiffs’ $6.75 million in financing.

Under the settlement announced today, Microbot Medical will pay the investors $2.154 million, according to a Form 8-K filed with the SEC. The amount includes $1.1 million in cash from the company’s insurance carrier, with the rest covered by over 1 million shares of restricted company common stock.

According to the company, the arrangement ensures that the settlement will not impact its cash position or its balance sheet. Microbot Medical CEO Harel Gadot said in a news release that resolving the lawsuit without impacting cash on hand enables the company to continue moving forward.

The settlement comes as Braintree, Massachusetts–based Microbot Medical expands its U.S. operations and builds on the momentum from the positive results of its good laboratory practices (GLP) pre-clinical study.

Just yesterday, the company submitted an Investigational Device Exemption (IDE) application with the FDA to commence its pivotal clinical trial in humans, according to the SEC filing.