Surgalign receives court approval of settlement with LifeNet

By Sarah Lizee

Olympia, Wash., Sept. 8 – Surgalign Holdings, Inc. received approval of a settlement with LifeNet, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said the settlement agreement resolves patent infringement claims asserted by LifeNet against the debtors and provides for a global settlement between LifeNet and the debtors regarding the treatment of LifeNet’s claim and all claims asserted in a Florida lawsuit and federal circuit appeal.

Through the settlement, LifeNet will be granted an allowed general unsecured claim against each of the debtors in the amount of $12.5 million.

LifeNet will support the debtors’ restructuring process, including any proposed sale or Chapter 11 plan proposed in the cases.

And, to the extent that a plan establishes an administrator or similar vehicle for the winddown of the estates, the debtors will cause the plan administrator to consult with LifeNet regarding its activities.

Surgalign Holdings is a Deerfield, Ill.-based medical technology company. The company filed bankruptcy on June 19 under Chapter 11 case number 23-90731.

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