Conformis, Inc. Settles Litigation and Receives Loan Forgiveness

Strategic Insights -

Conformis, Inc. has reached a settlement with Stryker Corporation and other parties in a lawsuit regarding patent infringement. Under the terms of the settlement, the defendants will make a one-time payment of $15 million to Conformis and be granted a non-exclusive license to certain Conformis patents. The settlement resolves a lawsuit that Conformis filed in April 2020 against Wright Medical and Tornier, alleging patent infringement.

Key Takeaways:

  • Conformis, Inc. has settled a lawsuit with Stryker Corporation and other parties regarding patent infringement for $15 million.
  • The settlement resolves a lawsuit filed in April 2020, in which Conformis alleged infringement on certain patents related to patient-specific instrument and implant systems.
  • Wright Medical and Tornier were acquired by Stryker in November 2020, subsequent to Conformis' commencement of the lawsuit.
  • As part of the settlement, Stryker will be granted a non-exclusive license to certain Conformis patents.
  • Conformis has also received forgiveness for a $4.7 million loan from the Paycheck Protection Program (PPP), which will be recognized during the second quarter of the fiscal year ending December 31, 2021.
  • The forgiveness of the PPP loan, plus accrued interest, totals $5.2 million.

Statistics:

  • Settlement amount: $15 million
  • Date of settlement agreement: June 30, 2021
  • Forgiveness amount of PPP loan: $4.7 million
  • Total forgiveness amount, including interest: $5.2 million
  • Date of PPP loan forgiveness decision: June 28, 2021

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION (2021) FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.