Benzinga | Jun 4, 2021 06:10AM EDT

Second Sight Medical 8-K Shows Co. Received Summons From Pixium Vision Related To Suit Filed In Commercial Court In Paris

On June 1, 2021, the Company received a summons from Pixium Vision SA relating to a suit filed in the Commercial Court of Paris. The summons claims that the Company violated the Memorandum of Understanding ("MOU") between the parties dated January 5, 2021, and requires an appearance before the Court in Paris on October 21, 2021. Pixium claims damages aggregating (euro)5,217,660 or approximately USD $6,365,545, plus court and other costs. On April 5, the Company delivered $1 million in liquidated damages to Pixium as contemplated within the MOU. Pixium asserts that the Company has violated its commitments under the MOU in bad faith by invoking the termination clause in order to limit damages due to Pixium to the $1 million amount in disregard of MOU provisions which provide for payment of damages to the injured party. Pixium seeks to have the Court order that the MOU termination results from the exclusive fault of the Company and that the Court grant to Pixium "full payment of damages". The Company believes that it owes nothing further to Pixium under the MOU, and it intends vigorously to defend against these claims. The Company cannot predict the outcome of this dispute at this early stage, however the cost to the Company of this Paris, France-based litigation or other proceeding, regardless of its merit, could consume a material portion of our managerial and financial resources, and even if resolved in our favor, could result in material harm to our business, financial condition and results of operations.