Sientra settles lawsuit with former manufacturer
Goleta-based breast implant manufacturer Sientra announced the settlement of an intellectual property and contract lawsuit with its former Brazilian manufacturer Silimed on Aug. 1.
Securities and Exchange Commission documents filed by Sientra state that the two companies participated in court-ordered arbitration July 27, and Sientra agreed to pay $9 million within the next 30 days, with another $1 million to be paid by July 1, 2018. It will also pay Silimed royalties on its net sales of certain products of up to $5 million, but neither party admitted liability in the agreement.
“We view the settlement as an attractive conclusion for Sientra, with a net positive impact on our strategic plans,” Sientra Chairman and CEO Jeffrey Nugent said in a news release. “Our actual expense and cash outlay is significantly lower when accounting for the savings from ongoing legal costs associated with taking both the litigation and arbitration lawsuits through to trial. We look forward to moving our business forward without the distraction of these issues and focus on the many strategic opportunities in front of us.”
The company had previously settled two lawsuits for $10.9 million with shareholders who participated in the company’s secondary stock offering Sept. 23, 2015 and lost money when European regulators suspended implants made by Silimed the following day, causing Sientra’s stock to fall.
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