Sleep Innovations & Foamex settle litigation

24 Dec '07

2 min read

Sleep Innovations Inc and Foamex International Inc announced that they have resolved the litigation pending between the companies to their mutual satisfaction.

As part of the confidential settlement, the companies have agreed to dismiss with prejudice their respective claims pending in the United States District Court for the Eastern District of Pennsylvania and have agreed, subject to payment terms, to the payment of $12 million to Foamex for funds withheld for goods received pending the outcome of the litigation.

The companies have agreed to a stipulated judgment to this effect. In addition, the companies have terminated their supply agreement effective August 6, 2007. Other terms of the agreement are confidential.

“We are pleased to have reached this agreement, which enables us to focus our resources on serving our customers and the continued success of Sleep Innovations,” said Joseph E. Lynch, President and Chief Executive Officer of Sleep Innovations.

“We are pleased to have resolved this litigation,” said Foamex's President and Chief Executive Officer, Jack Johnson. “This agreement eliminates the expense and distraction associated with the litigation and allows us to concentrate on our business priorities, which are satisfying our customers, meeting our commitments to reduce debt, growing our company, and thereby maximizing shareholder value.”

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