US court denies Cochlear appeal rehearing

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Cochlear (ASX:COH) has announced that the US Court of Appeals for the Federal Circuit in Washington DC has denied its petition for a rehearing of an appeal against a judgement involving patent infringement.

In 2020, the Court of Appeals affirmed the US District Court award of US$268 million in patent infringement damages against Cochlear and its US subsidiary Cochlear Americas in a lawsuit by the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics.

Cochlear said the Judgment will become final on 26 May 2020 and remanded to the District Court for payment of approximately US$280 million being the judgment amount and post-judgment interest.

The company said payment is expected to be made in the current financial year. "Cochlear has committed bank loan facilities available to fund the Judgment," it said.

A decision in the US District Court is still pending on an application by Alfred E. Mann Foundation for Scientific Research and Advanced Bionics for prejudgment interest of US$123 million and legal fees of US$15 million.

"Cochlear has opposed both applications and the calculation methodology," said the company. "There is significant uncertainty on whether prejudgment interest and/or costs will be awarded and/or the amount of any award and therefore this exposure is being treated as a contingent liability."