ATLANTA (AP) -- Medical device maker CryoLife Inc. said Thursday it agreed to settle lawsuits with Medafor Inc. and CardioFocus Inc.
The company said it will pay CardioFocus $4.5 million in the next 30 days to resolve a patent dispute in federal court. It will receive $3.5 million from Medafor by early September. The companies are dismissing their claims against each other and won't be able to renew them.
CryoLife filed its claim against Medafor in Georgia, and CardioFocus filed its claim against CryoLife subsidiary Cardiogenesis Corp. in Massachusetts.
CryoLife said it will no longer have to pay Medafor $1.2 million for previous inventory purchases. The company said it owns 2.4 million shares of Medafor and believes it is the largest shareholder in the company, with a stake of 9.2 percent.
CryoLife said it will update its financial guidance accordingly during its second-quarter conference call, which is scheduled for late July.
In May CryoLife bought Hemosphere Inc., a company that makes a vascular graft that is used in kidney dialysis patients, for $17 million. Its updated guidance will also reflect that purchase.
Shares of CryoLife rose 7 cents to close at $4.78 on Thursday.