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News Breaks | | | | December 13, 2012 | | 16:51 EDT |  | NUVA | NuVasive releases $62.5M from escrow following appeals court ruling
NuVasive announced the release of $62.5M from a restricted escrow account in relation to NuVasive's trademark dispute regarding the NeuroVision trade name. In January 2011, an unfavorable judgment in the amount of $60M plus attorney fees and costs was entered against NuVasive relating to its use of the NeuroVision trade name. NuVasive subsequently entered into an escrow arrangement and transferred $62.5M into a restricted escrow account to secure the judgment. In reversing the judgment against NuVasive, the Ninth Circuit Court of Appeals remanded the case for a new trial and instructed the court to assign a different judge. The plaintiff has not appealed the Court of Appeals' ruling and NuVasive has now secured the release of the $62.5M from the restricted escrow account. | |
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| June 12, 2013 | | 10:20 EDT |  | NUVA | NuVasive new royalty rates a modest negative, says Wells Fargo
 Subscribe for More Information | | | 05:25 EDT | | NUVA | NuVasive announces court ruling, intends to appeal verdict in Medtronic case
NuVasive announced that it received a ruling from the U.S. District Court in regards to ongoing royalty rates for Phase I of its patent litigation with Medtronic. As part of the verdict in Phase I of the litigation, royalty rates were determined by the jury as follows: 10% on certain of NuVasive's CoRoent XL implants and 3% on certain MaXcess retractors and related products. Before the appeal in Phase I could move forward, the Court was required to determine the ongoing royalty rates applicable to these products during the period of time following the verdict. Medtronic requested ongoing royalty rates of 36% on the applicable NuVasive CoRoent XL implants and 11% on the applicable MaXcess retractors and related products. However, in the ruling received, the Court ordered royalty rates of 13.75% on the applicable CoRoent XL implants and 8.25% on the applicable MaXcess retractors. Since September 2011, NuVasive has been accruing an estimated litigation royalty expense based on the royalty rates used in the jury's original calculation of lost profits and monetary damages. Prior to the post-verdict rates issued by the Court, the company had expected litigation royalty expense of approximately $11M for FY13. The new royalty rates determined today will increase that expected litigation royalty expense for 2013 by approximately $5M. In addition, in the current quarter, the company will record an approximate $6.5M charge to account for the historical difference between the post-verdict royalty rates determined today and the rates that were being used to calculate the litigation royalty expense accruals since September 2011. The vast majority of the litigation royalty expense accruals will end in February 2015 as certain Medtronic patents expire. As the verdict is being appealed, the company will accrue to the higher rates determined and will begin to escrow funds on a go-forward basis. | |
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