CardioFocus Settlement

3 Months Ended

Mar. 31, 2013

CardioFocus Settlement [Abstract]

CardioFocus Settlement

6.  CardioFocus Settlement

On June 14, 2012 Cardiogenesis Corporation (“Cardiogenesis’) entered into a settlement agreement with respect to its litigation with CardioFocus, Inc. (“CardioFocus”).  Pursuant to the terms of the settlement agreement, Cardiogenesis paid $4.5 million in cash to CardioFocus.  Cardiogenesis and CardioFocus agreed and acknowledged that each party would bear its own costs and expenses, including attorneys’ fees, incurred in or as a result of the litigation.  On June 14, 2012 the parties filed a stipulation of dismissal with prejudice in the U.S. District Court for the District of Massachusetts.

As a result of the settlement, the Company recorded an additional loss of $3.6 million in general, administrative, and marketing expenses on its Summary Consolidated Statement of Operations and Comprehensive Income in the second quarter of 2012 for a total of $4.1 million in legal settlement expenses for the year ended December 31, 2012.  The Company paid the $4.5 million settlement payment to CardioFocus in July 2012 using cash on hand.