Coppell, Texas-based AutoMedx sued the Asahi Kasei (TYO:3407) subsidiary in 2015, alleging breach of contract after Zoll’s Advanced Circulatory Control Systems business spiked a product development deal “due to AutoMedx’s failure to perform,” Zoll said.
The case went to arbitration, which resulted in a $1.8 million damages award and another $3.6 million award to cover legal fees, according to Chelmsford, Mass.-based Zoll.
“We are pleased that the arbitrator found ACSI’s termination of the AutoMedx contract to have been proper and that ACSI was entitled to a refund from AutoMedx of its development costs, as well as an award of a substantial amount of the attorneys’ fees and costs that Zoll incurred in the arbitration,” Zoll CEO Jonathan Rennert said in prepared remarks. “It is unfortunate that AutoMedx chose to pursue litigation, as the arbitrator completely exonerated Zoll and ACSI from any liability to AutoMedx whatsoever.”
At DeviceTalks Boston, Tyler Shultz will give attendees an inside look at Theranos and how he was able to sound the alarm after he realized the company was falling apart. Shultz will take attendees behind the story that everyone is talking about: the rise and fall of Elizabeth Holmes and her diagnostic company, Theranos.
Join Shultz and 1,000+ medical device professionals at the 8th annual DeviceTalks Boston.