CryoLife Inc. has settled lawsuits with Medafor Inc. and CardioFocus Inc.
In the Medafor case, the company will pay Kennesaw, Ga.-based CryoLife (NYSE: CRY) $3.5 million in cash. Half is due on or before July 9, 2012 and the other half on or before Sept. 6, 2012.
Also, CryoLife no longer has to pay Medafor $1.17 million for previous purchases of inventory.
Both parties dismissed with prejudice all claims and counter claims associated with the lawsuit over distribution agreements.
CryoLife will continue to own about 2.4 million shares of Medafor common stock, or about 9.2 percent of Medafor’s total outstanding shares. CryoLife believes that it remains Minneapolis-based Medafor’s largest shareholder.
In the second settlement, CryoLife will pay Marlborough, Mass.-based CardioFocus $4.5 million in cash within 30 days to end a patent dispute between CryoLife subsidiary Cardiogenesis Corp.
Both parties agreed to dismiss with prejudice all claims and counter claims associated with the lawsuit.
The settlements will trim the company’s legal expenses, which have hampered its bottom line. In the first quarter, litigation expenses dragged CryoLife’s profit down 42 percent to $991,000.