Cochlear Ltd

COH: XASX (AUS)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
A$771.00XqhFdpfllqr

Court Case a Minor Speed Bump for Cochlear

Cochlear has been ordered by the U.S. District Court to pay USD 268 million in damages to the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics due to patent infringement. Cochlear will appeal the judgment with an outcome expected in about two years. Importantly, the damages relate to an expired patent and the ruling should not impact Cochlear’s future business. Cochlear disagrees with the reasons for the damages and will take the case to the U.S. Court of Appeals. Pending the outcome of the proceedings, Cochlear will lodge a USD 335 million insurance bond with the Court.

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