AGA Medical (AGAM) to Pay $35M in Medtronic (MDT) Patent Litigation Settlement

March 29, 2010 7:35 AM EDT
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AGA Medical Holdings, Inc. (NASDAQ: AGAM) today announced the settlement of a patent infringement lawsuit between the company and Medtronic, Inc (NYSE: MDT). This dispute relates to the January 2007 patent infringement action against the company, filed by Medtronic, Inc., alleging that substantially all of AGA Medical’s AMPLATZER occluder and vascular plug devices infringe three of Medtronic’s method and apparatus patents on shape memory alloy stents (U.S. Patent Nos. 5,190,546, 6,306,141 and 5,067,957, collectively known as “the Jervis patents”).

President and Chief Executive Officer of AGA Medical John Barr commented, “We are pleased to have reached this agreement, which eliminates much of the expense and uncertainty associated with the litigation and enables the company to focus its resources and attention on providing patients with innovative devices to treat significant medical conditions."

AGA Medical will make payments to Medtronic in the total amount of $35 million. The settlement amount will be paid over four years with the final payment due in January 2014.

This settlement covers all existing products, as well as any new products developed and commercialized by AGA Medical, using nitinol for the entire term of the Jervis patents.

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