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Commitments and Contingencies
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6 Months Ended |
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Jun. 30, 2011
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| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES |
NOTE 9—COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Company discloses material loss contingencies deemed to be reasonably possible and accrues
for loss contingencies when, in consultation with the Company’s legal advisors, the Company
concludes that a loss is probable and reasonably estimable. Except as otherwise indicated, the
possible losses relating to the matters described below are not reasonably estimable. The ability
to predict the ultimate outcome of such matters involves judgments, estimates and inherent
uncertainties. The actual outcome of such matters could differ materially from management’s
estimates.
Intellectual Property Litigation
During April 2010, Discus Dental LLC (“Discus”) and Zap Lasers LLC (“Zap”) filed a lawsuit
against us in the United States District Court for the Central District of California, related to
the Company’s iLase diode laser. The lawsuit alleged claims for patent infringement, federal
unfair competition, common law trademark infringement and unfair competition, fraud and violation
of the California Unfair Trade Practices Act. In May 2010, Discus and Zap filed a First Amended
Complaint which removed the allegations for fraud as well as certain claims for trademark
infringement and unfair competition. In July 2010, Discus informed the Court that it had acquired
Zap and requested that Zap be dropped as a party to the lawsuit and Discus became the sole
plaintiff in the suit. Discus was subsequently acquired by Royal Philips Electronics N.V.
(“Philips”) on October 11, 2010. All of Discus’ and Philips’ claims against the Company were
completely settled in June 2011 and were dismissed in their entirety with prejudice with the court
on July 12, 2011.
Other Matters
In the normal course of business, the Company is subject to other legal proceedings, lawsuits
and other claims. Although the ultimate aggregate amount of probable monetary liability or
financial impact with respect to these matters is subject to many uncertainties and is therefore
not predictable with assurance, management believes that any monetary liability or financial impact
to the Company from these other matters, individually and in the aggregate, would not be material
to the Company’s financial condition, results of operations or cash flows. However, there can be
no assurance with
respect to such result, and monetary liability or financial impact to the Company from these
other matters could differ materially from those projected.
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