Digi Int’l Pays $1.5M to Settle Patent Infringement Suit

The Minnetonka-based company said that the settlement is expected to impact second-quarter earnings.

Digi International, Inc., a Minnetonka-based provider of wireless products, recently announced that it agreed to pay $1.5 million to settle a patent infringement lawsuit.

U.S. Ethernet Innovations (USEI) sued Digi last May, alleging infringement on several patents related to Ethernet technology. USEI is based in Tyler, Texas, and it is the successor of 3Com Corporation’s Ethernet business, according to court filings. 3Com was acquired by Hewlett Packard in 2010.

In an amended complaint filed in January, USEI sought damages, accusing Digi and two other defendants of infringing on four patents.

Digi announced its $1.5 million settlement earlier this week, adding that it has no additional payment obligations. The company said that the settlement is expected to reduce its second-quarter earnings per share by about $0.04.

Digi is among Minnesota’s 60 largest public companies based on revenue, which totaled $190.6 million in its most recently completed fiscal year.