Sharps Compliance Settles U.S. Govt. Contract Termination Lawsuit - Quick Facts

(RTTNews) - Sharps Compliance Corp. (SMED) announced Wednesday that it has reached an agreement settling all claims against the United States government and various agencies related to the January 2012 termination of the Company's February 2009 contract with the Centers for Disease Control and Prevention or CDC.

The settlement agreement calls for a cash payment to Sharps Compliance of about $1.54 million, which is inclusive of interest. Each party will bear its own costs, attorney fees, and expenses.The settlement amount is expected to be received over the next 30 to 60 days and will be recorded as a recovery of previously incurred post-contract termination expenses. The settlement will have a positive net income impact of $0.10 per share.

On January 29, 2009, the Company reached a five year contract with the United States Department of Veterans Affairs, National Acquisition Center (VA NAC), to provide its Sharps MWMS, a rapid-deployment solution designed to provide medical waste collection, storage and treatment in the event of natural disasters, pandemics, man-made disasters, or other national emergencies in support of the Centers for Disease Control, Division of Strategic National Stockpile.

Sharps MWMS also incorporated warehousing, inventory management, training, data and other services necessary to provide a comprehensive solution. Sharps performed under the contract through January 31, 2012.