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CombiMatrix Inks Settlement Deal Ending Insurance Fraud Suit

NEW YORK (GenomeWeb) – CombiMatrix today announced that it has finalized a settlement that ends an insurance fraud lawsuit filed against the company by a former employee.

In 2011, ex-CombiMatrix employee Michael Strathmann filed a suit in a California Superior Court alleging that the company, as well as former CEO Amit Kumar and former partner Acacia Research, submitted false and fraudulent insurance claims to the National Union Fire Insurance Company.

The suit was dismissed by the court in mid-2011, but Strathmann appealed and an appeals court reversed the dismissal the following year. The Superior Court later sided with CombiMatrix once again, and last month the decision was made final.

CombiMatrix today said that it has executed a settlement agreement with Strathmann under which he relinquished his right to further litigate the complaint. In exchange, the company agreed to give up its right to recover court costs and seek reimbursement from Strathmann.

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