Scapa Group Seeks USD84 Million In Damages From ConvaTec.
(Alliance News) - Bonding and adhesive-based products manufacturer Scapa Group PLC on Thursday said it will seek USD83.8 million in damages from medical technology company ConvaTec Inc for breaching a supply agreement.
The company's US unit Scapa Tapes North America LLC has filed a complaint against ConvaTec for breach of a master supply contract between the companies. It is seeking the monetary damages and a declaratory judgement, resolving legal uncertainty over the contract.
Scapa Group and Scapa Tapes separately have filed a motion to dismiss the complaint filed by ConvaTec with regard to the agreement between ConvaTec and Scapa Tapes. ConvaTec has sought a declaratory judgment from a federal court in New Jersey.
ConvaTec Inc, a unit of London-listed medical products and technologies company ConvaTec Group PLC, in June terminated its supply agreement with Scapa. The agreement was a binding commitment for a minimum of USD30 million of revenue per year for Scapa.
The five-year supply agreement covered products provided by Scapa's healthcare business, and still had three years remaining.
Scapa subsequently said ConvaTec didn't have "any legitimate grounds to terminate the master supply agreement" and that it would "vigorously challenge and defend its rights".
Shares in Scapa Group were up 2.2% at 174.80 pence each on Thursday morning. ConvaTec Group shares were flat at 146.55p each.
By Tapan Panchal; firstname.lastname@example.org
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|Date:||Jul 11, 2019|
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