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Elekta to pay EUR 8.9 million in legal dispute

On May 23, 2016, an arbitration tribunal in London issued an award in a dispute between two Elekta group companies and humediQ GmbH.

The award concludes an arbitration with humediQ arising out of an agreement for the exclusive supply of Identify under the Elekta label, which Elekta entered into in 2011. Identify is a patient identification and setup verification product. Elekta decided to discontinue to market and sell Identify in late 2014, due to the product’s commercial viability.

The tribunal determined that the Elekta companies did not validly terminate the 2011 agreement and that, as a result, they must pay humediQ approximately EUR 8.9 million for Identify systems that the Elekta companies did not order according to minimum volume commitments in the contract. This amount is less than half of the EUR 19 million that humediQ claimed in the arbitration. The tribunal held that the respective success of each party was comparable and on that basis that each party should bear its own legal costs. The Elekta companies do not have any further obligation to purchase Identify systems from humediQ.

In addition, Elekta will write off approximately EUR 5 million connected to payments made under the agreement. The negative result of approximately EUR 14 million will be taken in the fourth quarter of Elekta’s fiscal year 2015/16 as a “non-recurring item”.

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