Last March, the Chinese distributor filed an application with the Shanghai International Economy and Trade Arbitration Commission alleging that the Wayne, Penn.-based company wrongfully terminated its contract.
The distributor sought $7.8 million in damages and to compel Teleflex to repurchase products the distributor claimed it purchased from it for $14.9 million, according to the filing.
Teleflex countered with its own suit, seeking payment of $9.3 million in respect to outstanding trade receivables owed by the distributor.
Last month, the two companies reportedly inked a settlement agreement to resolve claims on both sides, with Teleflex accepting the return of inventories from the distributor for $11.9 million and cancelling $9.3 million in trade receivables owed.
Teleflex said it recorded a provision of $3.6 million in connection with the settlement, according to an SEC filing.
Last month, Teleflex put red ink into the ledger during the fourth quarter, thanks to a $108 million hit from the tax reforms enacted last year, and missed the consensus expectation for the top line.