Biolitec AG has been ordered to pay $74.9 million to AngioDynamics, provider of minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology.
The United States District Court for the District of Massachusetts entered a judgment awarding AngioDynamics $74.9 million in damages based on AngioDynamics' claims that Biolitec AG, Biomed Technology Holdings and Wolfgang Neuberger intentionally interfered with its US subsidiary, Biolitec Inc's, contractual obligations. The judgment is also based on claims of fraudulent transfers and violations of Massachusetts's Unfair Business Practices Act.
The dispute originally began when AngioDynamics asserted Biolitec Inc breached a contractual agreement to defend and indemnify AngioDynamics against patent infringement claims by third parties arising out of the use of laser vein ablation products supplied by Biolitec.
According to Bloomberg Businessweek, AngioDynamics, claimed in a lawsuit that Biolitec diverted assets via a merger with an Austrian unit to avoid a $16.5 million judgment imposed by a New York federal court, according to court papers.
"We are pleased with the court's decision," said AngioDynamics president and chief executive officer Joseph M. DeVivo. "The judgment was based on the defendant's refusal to cooperate in their discovery obligations in the Massachusetts court, just as Biolitec originally failed to live up to its obligation to indemnify us, hurting our business as we defended ourselves against infringement claims concerning the distribution of their products. We will continue to vigorously pursue this litigation until we recover our damages, however long it takes."