The parent of Philips Medical Systems of Andover, MA, has paid $185 million to settle a lawsuit with Volumetrics Medical Imaging, a now-defunct developer of 3D ultrasound technology.
Volumetrics had tried to bring to market a 3D echocardiography scanner, but the company folded in 2001. The company's lawsuit against Philips stems from its claim that it was duped into giving Philips access to its 3D ultrasound technology as part of what it said was a proposed deal for Philips to acquire the firm, according to an article in the Raleigh News & Observer.
Philips denied that it ever received proprietary technology from Volumetrics, or that it ever made a formal acquisition offer. Nevertheless, Volumetrics won a $318.75 million award in 2003 after a jury trial in a U.S. District Court in North Carolina, according to the newspaper.
Philips appealed the judgment, and Volumetrics' investors agreed to settle out of court on October 22 for $185 million, rather than take their chances on appeal.
Philips' spokesman Jayson Otke denied there was ever a "relationship" between his company and Volumetrics.
"We did a series of acquisitions and we were in discussions with Volumetrics to see how to move forward with Volumetrics in ultrasound," he said. "Then we acquired Agilent, an ultrasound business, and subsequent to that acquisition it was felt that the needs we had for ultrasound could be met through this acquisition, and therefore we decided to discontinue the discussions and the relationship with Volumetrics, which resulted in this (suit)."
The only remaining Volumetrics employee declined to talk with AuntMinnie.com for this article, and referred us to the chairman of Volumetrics' board of directors, John Oxaal. Oxaal did not return several telephone messages.
Volumetrics' employees and investors will split the $185 million.
By Robert Bruce
AuntMinnie.com contributing writer
December 8, 2004
Related Reading
Acquisitions boost Philips Medical results, February 11, 2003
Major vendors digest ultrasound acquisitions, November 25, 2001
Philips unifies brands, lays claim to radiology’s number two spot, November 12, 2001
Philips completes Agilent purchase, August 1, 2001
Philips plans $1.7 billion acquisition of Agilent healthcare group, November 17, 2000
Copyright © 2004 AuntMinnie.com
