ev3 settles embolic-related patent litigation

Products involved in the litigation include embolic protection devices and certain detachable embolic coils, which are medical devices related to cardiovascular diseases.

Under the terms of the agreements in principle, all claims by all parties will be dismissed with prejudice and ev3 will not be required to stop selling any of its existing product lines, or make any future royalty payments. In addition, ev3 will make a one-time payment of approximately $11.7 million to the University of California and a one-time payment of approximately $3.7 million to Boston Scientific.

As a result of the agreements in principle, ev3 has taken a $20.2 million special charge in the third quarter of 2007 for amounts expected to be paid by ev3 to the parties and attorneys fees and expenses associated with the litigation.

The settlements remain subject to negotiation of final written agreements among the parties and the settlement terms with the University of California remain subject to final approval by the Regents of the University of California.

The litigation involving the University of California was scheduled to go to trial on October 16, 2007 and has been continued by the court for purposes of permitting the parties to enter into a final written agreement with a status conference set with the court in early December 2007.