American Hearing Firm Sues Siemens

An American firm that provides hearing aids has filed a lawsuit against Siemens Hearing Instruments over a loan dispute.

The move by HearUSA, who provide hearing enhancement products and accessories, follows that by German giant Siemens hearing aid, its biggest supplier, who released a Securities and Exchange Commission filing several weeks ago that condemned the retailer over its reluctance to pay a loan.

Siemens warned HearUSA that they must pay $3.2 million by the end of January and advised the retailer’s shareholders that it could use its remedy of default to seize control of the company.

This has reflected in the figures, as HearUSA shares plummeted 35 per cent and hit a 52 week low.

However, the hearing aid retailer has filed its lawsuit in the Supreme Court of the State of New York to settle its dispute over the loan.

Stephen Hansbrough, HearUSA Chairman and CEO, said the company is current on its payments to Siemens under the supply and credit agreements. The issue is a loan arising from the sale of HearUSA’s Canadian assets in 2009.

He said the statements made by Siemens have been “troubling” to the company’s stockholders, employees and clients.

“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,” Mr Hansbrough said.

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