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US appeals court overturns $10.4M judgment against Calmare Therapeutics

Calmare Therapeutics Inc. said a U.S. appeals court overturned a previous $10.4 million judgment against the company for allegedly violating a contractual agreement.

South Korea's GEOMC Co. Ltd. had sued Calmare in 2014 in the U.S. District Court for the District of Connecticut for failing to comply with the terms of a security agreement.

Under the alleged agreement, GEOMC was expected to manufacture Fairfield, Conn.-based Calmare's pain therapy device in exchange for a security interest in the devices.

In 2017, the district court awarded GEOMC monetary damages of $4.7 million and pre-judgment interest of $5.7 million, for a total of $10.4 million. Calmare appealed the ruling.

The U.S. Court of Appeals for the 2nd Circuit reversed the ruling and remanded the case to the district court for further proceedings.

Both the parties have until March 26 to seek reconsideration of the appeal court's judgment.