Liberty Medical Settles $40 Million Feud With Alere

Law360, Chicago (April 25, 2013, 10:05 PM EDT) -- Bankrupt Liberty Medical Supply Inc. has agreed to hand over its Medicare diabetes supply delivery business to Alere Inc. — along with $22.5 million — to satisfy a $40 million loan and resolve a contract dispute between the rivals, according to settlement papers filed Wednesday in Delaware.

The deal dispenses with all of Liberty Medical’s secured debt and allows the company to retain its Medicare insulin pump business, while Alere receives assets that it had bargained to acquire under the loan agreement.

Absent the settlement, Alere’s...
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