SOURCE: HearUSA

HearUSA

February 04, 2011 13:50 ET

HearUSA Files Suit Against Siemens

Seeks Declaratory Judgment From New York Court; Case Concerns Payment Arising From 2009 Sale of Canadian Assets

WEST PALM BEACH, FL--(Marketwire - February 4, 2011) -  HearUSA, Inc. (NYSE Amex: EAR) has filed an action against Siemens Hearing Instruments, Inc. in the Supreme Court of the State of New York. HearUSA is seeking adjudication of a dispute between the parties concerning a claim by Siemens for an additional loan prepayment under the credit agreement of $2.3 million arising from HearUSA's sale of its Canadian assets in 2009. 

"Despite our efforts to avoid litigation, we believe we had no alternative other than to file suit," commented Stephen J. Hansbrough, chairman and chief executive officer. "We recognize that the public statements made by Siemens in its Schedule 13D filing about our relationship and HearUSA's financial condition have been troubling to our stockholders, employees, patients and contracting parties. We are current in our regular payments to Siemens under the supply agreement and credit agreement. We intend to continue to abide by our agreements with Siemens."

"We regret that our long-term partner has chosen these courses of action, forcing us to turn to the courts for resolution of our dispute concerning the 2009 sale of assets. The dispute relates to a special prepayment obligation under the credit agreement which we believe has been satisfied. We will vigorously pursue our rights under the credit agreement," concluded Hansbrough.

About HearUSA
HearUSA, Inc. (NYSE Amex: EAR) is the recognized leader in hearing care for the nation's top managed care organizations through its network of more than 2,000 hearing care providers and 176 company-owned centers. HearUSA is the nation's only hearing care network accredited by URAC, an independent, nonprofit health care accrediting organization dedicated to promoting health care quality through accreditation, certification and commendation. HearUSA is also the administrator of the AARP Hearing Care Program, designed to help millions of Americans aged 50+ who have untreated hearing loss. For more information about HearUSA visit www.hearusa.com, or go to www.hearingshop.com for a wide selection of hearing related products available for purchase online.

Contact Information

  • Company Contact:
    HearUSA, Inc.
    Stephen J. Hansbrough
    Chairman and CEO
    Tel 561-478-8770, ext 132

    Investor Relations
    Scott Liolios or Ron Both
    Liolios Group, Inc.
    Email Contact
    Tel 949-574-3860