Cardiovascular Systems Pays $1M, Settles Ev3 Suit
New Brighton-based Cardiovascular Systems, Inc. (CSI), said Tuesday that it has agreed to pay $1 million to settle an employment lawsuit filed by Plymouth-based Ev3-a rival medical-technology company that was recently bought.
The litigation dates back to 2007 and surrounds two employees who joined CSI from Ev3.
CSI will pay Ev3 $750,000 in cash and a $250,000 promissory note that's due by January 1, 2014. CSI said that its insurance will cover half the cost of the settlement.
The settlement dismisses all claims and counterclaims in the lawsuit. Neither party admitted to any liability or wrongdoing.
“Reaching a settlement in this lawsuit is in the best interest of CSI,” CSI President and CEO David L. Martin said in a statement. “By resolving this issue, we can move forward and focus on our business and growth opportunities, without the distractions and expense of prolonged litigation.”
CSI develops and commercializes interventional treatment systems for vascular disease. It is among Minnesota's 85-largest public companies based on revenue for its most recent fiscal year, which totaled $64.8 million.
Dublin, Ireland-based Covidien paid $2.6 billion earlier this year to acquire Ev3, which develops or acquires, manufactures, and sells technologies and solutions for the treatment of peripheral vascular and neurovascular diseases. Ev3's 2009 net sales totaled $449.1 million, which made it one of Minnesota's 60-largest public companies prior to the sale.