NEW YORK (GenomeWeb News) – CombiMatrix disclosed in a filing with US Securities and Exchange Commission today that it has inked a settlement agreement with National Union Fire Insurance Company, under which CombiMatrix will receive $25 million.
The settlement ends a legal battle that began more than two years ago when CombiMatrix filed a suit claiming that the insurance firm had refused to defend and indemnify CombiMatrix under its director and officer’s insurance policy. In May 2008, the US District Court for the Central District of California entered a final judgment in favor of CombiMatrix for $35.7 million.
Oral arguments before an appeals court were scheduled to be heard next week. However, the settlement will end the case.
National Union has until Feb. 12 to pay the $25 million to settle the dispute.
Settlement of the suit also could make it easier for CombiMatrix to find the "strategic options" it has sought since September with the help of financial advisers RW Baird.
During the firm's third-quarter conference call in November, President and CEO Amit Kumar said that the firm has contacted a number of undisclosed companies about options.
"These companies do not fit a single mold – they include both large cap companies and companies in the middle market, as well as financial organizations that have expressed an interest in getting into this space and are seeking a platform," Kumar said. "Some companies appear interested in acquiring our whole company, while others seen interested in components that are a strategic fit for them."