Cardiovascular Systems (CSI) has entered into a settlement agreement with ev3, a part of Covidien, dismissing all claims and counterclaims in the employment lawsuit between the two companies.

The litigation stems from a suit ev3 originally filed against CSI in 2007 related to employees who joined CSI from ev3.

Pursuant to the agreement, CSI will pay ev3 $1m, in the form of $750,000 cash and a $250,000 promissory note, due by 1 January 2014.

CSI will receive insurance proceeds of $500,000 related to the settlement and neither party admits any liability or wrongdoing.

CSI president and CEO David Martin said that reaching a settlement in this lawsuit is in the best interest of CSI and by resolving this issue, they can move forward and focus on business and growth opportunities, without the distractions and expense of prolonged litigation.