Surgalign (Nasdaq:SRGA) shares are down today on the news of its second-quarter financial results and a global settlement agreement.
Shares of SRGA were down 8.3% at $5.50 apiece before the market opened this morning. They sank even further after the market opened, with shares trading down 20.5% at $4.77 in the early hours. (MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was mostly unchanged.)
Effective Aug. 5, Surgalign entered into a global settlement agreement with Pioneer Surgical Technology, Resolve Surgical Technologies and RTI Surgical relating to the sale of its OEM business in 2020 and the continued relationship it has had with RTI since then.
Under the settlement agreement, the parties have amended various agreements, including distribution agreements for spinal implants and biologics. All parties have settled the litigation and released each other from potential claims, as well, according…