Little Canada-based St. Jude Medical Inc. has agreed to pay $3.9 million to settle a long-running dispute with AorTech International, the Business Journal reports.
The settlement comes after AorTech, a producer of material that insulates defibrillator leads that supplies a biomaterial to St. Jude, accused the device maker of a contract breach.
Under the agreement, which resolves an argument over the supply of Aortech’s “Elast-Eon” plastics, AorTech will be paid $3.4 million now and $500,000 on Mar. 31. St Jude’s will also buy some of Aortech’s assets for a further $250,000.
Neither St. Jude nor AorTech admitted liability.