Envoy Medical®, Inc. (NASDAQ:COCH), a hearing health company, today announced the settlement of an outstanding lawsuit filed by certain former shareholders of Envoy Medical Corporation (“EMC”), which is now a wholly-owned subsidiary of Envoy Medical, Inc.
In January 2020, EMC and the members of the EMC board of directors were sued by certain EMC shareholders in the District Court of Ramsey County, Minnesota. The lawsuit challenged certain financing transactions between EMC and Board member Glen Taylor. The members of the board of directors and Mr. Taylor defended against plaintiffs’ claims and asserted that the terms of the challenged transactions were in the best interests of the company and its shareholders.
Shortly after filing the lawsuit, two of the plaintiffs issued a press release that the board of directors believed contained false statements. The members of the board of directors asserted defamation counterclaims against those two plaintiffs.
The claims and counterclaims were resolved pursuant to a confidential settlement agreed to in August 2023. In connection with the settlement, the plaintiffs sold their EMC stock to an affiliate of Mr. Taylor.
