Medtronic Sued for $40 Million Over Heart Device Milestone (1)

Medtronic PLC was hit with a $40 million lawsuit in Delaware claiming it’s stiffing former shareholders of TYRX Inc., a 2013 acquisition, on a post-merger “milestone” payment triggered by a medical association’s recommendation in favor of a surgical device for reducing heart infections.

“Medtronic, in a blatant breach of its promises in the merger agreement, has refused to make the milestone payment,” the Chancery Court complaint says.

The suit, filed Tuesday, concerns the “TYRX Envelope,” a mesh sleeve “coated in antimicrobial agents” that was designed to surround pacemakers, defibrillators, and other cardiac implants, including those manufactured by Medtronic, a leading ...