Under the terms of NIR Diagnostics’s settlement with Masimo, as with the Shaklee-Masimo settlement that preceded it, the case has been dismissed without either party incurring financial liability to the other.
Shaklee has previously entered into a unilateral settlement agreement with Masimo in which Shaklee agreed that it would not continue litigation against Masimo and would not fund continued litigation by NIR Diagnostics.
The agreement was reached on the eve of the expiry date of Shaklee rights that were required to settle the claim. NIR Diagnostics immediately advised Shaklee that the commitment made in its settlement not to fund NIR Diagnostics’s continued litigation against Masimo, was a breach of its license agreement. But Shaklee denied that a breach occurred. On August 11, 2008, pursuant to the Shaklee-Masimo settlement agreement, Shaklee instructed NIR Diagnostics to dismiss its claims against Masimo.