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Friday, October 30, 2009

Attorneys still working out details of Luna Innovations settlement

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It will be at least another week before attorneys work out the details of settling a $36.3 million verdict against Roanoke-based Luna Innovations Inc.

In court documents filed Thursday -- which had been the deadline for finalizing a preliminary settlement first announced Sept. 24 -- attorneys said they needed until Nov. 6.

Although several past deadlines have been extended already, an official with Luna said Thursday that the basic framework of the settlement remains intact.

Luna filed for bankruptcy in July, three months after a California jury ordered it to pay $36.3 million to Hansen Medical Inc.

Hansen had accused Luna of stealing its trade secrets as the two companies explored the possibility of working together to develop a catheter for high-tech surgeries.

As part of the bankruptcy proceedings, Hansen and Luna have been working to trim a verdict that the judge has indicated would likely be reduced anyway by post-trial challenges.

Terms of the tentative settlement have not been made public. But Luna officials have said the amount is one that would allow the company to emerge from bankruptcy and pay all of its creditors in full.

-- Laurence Hammack

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