Digi International Settles Patent Infringement Lawsuit

Digi International (NASDAQ: DGII) announced today the settlement of a patent infringement lawsuit with U.S. Ethernet Innovations (USEI), LLC, for $1.525 million. On May 29, 2012, USEI filed a lawsuit against Digi, which was amended on September 21, 2012, including allegations against Digi pertaining to the infringement of four patents related to Ethernet technology. The settlement fully resolves the claims by USEI for both Digi and end users of its products and requires Digi to make a one-time payment of $1.525 million to USEI with no further payment obligations going forward. Digi has recorded the agreed settlement in its second fiscal quarter 2013 results, which Digi expects to release on Thursday, April 25, 2013. Net of taxes, the settlement is $1.0 million and is expected to reduce reported earnings per diluted share for the second fiscal quarter of 2013 by approximately $0.04.

For comments and suggestions, leave a message in the comments section below. Like and Follow our Facebook page for more stories and to stay up-to-date with the latest happenings.

About the author

Rob is a analyst and reporter covering stocks and business news.