Amedica Agrees to $75,000 Settlement Payment
ST. LOUIS, MO (December 7, 2015) – ulrich medical USA, Inc. (ulrich) today announced it has reached a settlement with Amedica Corporation (Nasdaq: AMDA) in association with a lawsuit that ulrich filed against Amedica alleging a variety of infractions related to the hiring by Amedica of a former ulrich sales director that ulrich alleged violated the former sales director’s Employment Agreement with ulrich, including its confidentiality and noncompetition provisions.
According to the lawsuit filed on April 27, 2015 in St. Louis, Missouri, ulrich contended that Amedica hired an ulrich employee who was legally bound by the non-competition provisions in his Employment Agreement, and that Amedica tortiously interfered with ulrich’s contract with its former sales director when Amedica knowingly hired him to work in states for which he previously worked for ulrich. In addition, ulrich also alleged that in making the hire, Amedica misappropriated ulrich’s trade secrets.
After depositions and court-appointed mediation, Amedica agreed to pay ulrich $75,000 in exchange for ulrich dropping the lawsuit.
A portion of the proceeds from this settlement will be given to ulrich employees as Christmas bonuses. “Integrity still matters,” said Hans Stover, President and Chief Executive Officer, ulrich medical USA. “When corporations knowingly violate legal contracts during their hiring processes, there should be a penalty for this behavior and while a $75,000 settlement is not a huge sum of money, it is enough to let other companies know that we will vigorously pursue enforcement of our rights in this arena.”