West Long Branch, New Jersey -- Foamex International Inc. has settled a breach of contract lawsuit which Sleep Innovations Inc. filed against it on 9 August 2007, at the US District Court in Pennsylvania.
According to a 19 Dec statement, Sleep Innovationns will pay Foamex $12 million for goods it has received from the foam maker. The bedding firm had withheld payment pending the outcome of the litigation. Other terms of the agreement were not disclosed.
The two companies have also terminated their supply agreement.
"We are pleased to have reached this agreement, which enables us to focus our resources on serving our customers and the continued success of Sleep Innovations," said Joseph Lynch, president and ceo of the company, in the statement.
"This agreement eliminates the expense and distraction associated with the litigation and allows us to concentrate on our business priorities, which are satisfying our customers, meeting our commitments to reduce debt, growing our company, and thereby maximising shareholder value," said Foamex's president and ceo, Jack Johnson, in the statement.
Sleep Innovations is a manufacturer and marketer of memory foam sleep products, including pillows, mattress toppers and mattresses.