Bone densitometry vendor Hologic has signed a settlement agreement with Fleet Business Credit (formerly Sanwa Business Credit). The settlement ends a two-year dispute related to Hologic's strategic alliance program, under which Chicago-based Fleet purchased Hologic bone densitometry systems to lease to physicians on a fee-per-scan basis throughout the U.S.
Hologic of Bedford, MA, sold approximately $61 million worth of bone densitometers to Fleet until the program was discontinued in February 1999. Fleet advised Hologic in mid-1999 that it had incurred substantial losses under the program and sought to shift the losses to Hologic. Hologic filed suit in September 1999, alleging Fleet's failure to fulfill its contractual obligations, and Fleet countersued in October 1999.
The settlement provides for all claims to be dismissed with prejudice, and for Hologic to repay Fleet $3.05 million, comprising $1.5 million cash and a note of $1.55 million payable in three years, according to Hologic. In addition, Hologic said it will continue to be entitled to certain amounts collected over time from customers, such as scan overages and excess pool deposits.
These amounts will be credited directly against the note payable. Based upon current usage, Hologic believes that this credit will reduce the total due to Fleet in three years to approximately $1 million.
By AuntMinnie.com staff writersAugust 10, 2001
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