Item 3. Legal Proceedings
Item
3. Legal Proceedings.
From
time to time, we may be involved in litigation that arises through the normal course of business.
On
July 10, 2019, Bosti Trading Ltd., a former distributor in Russia (“Bosti”), filed suit with the Tel Aviv-Jaffa District
Court in Israel, or the Complaint, against InspireMD Ltd., claiming damages for alleged breaches by InspireMD Ltd. under the Distribution
Agreement, dated May 26, 2011, between Bosti and InspireMD Ltd., in connection with the voluntary field corrective action of our
MGuard Prime EPS we initiated in 2014. Bosti claimed that Bosti and its Russian subsidiary returned 1,830 units of MGuard Prime
EPS to InspireMD Ltd. upon initiation of the voluntary filed action, and, since the Russian Ministry of Health prohibited distribution
of MGuard Prime EPS on August 28, 2014, and did not approve distribution MGuard Prime EPS until September 20, 2016, Bosti was
entitled to recover from InspireMD Ltd. €1,830,000 (which is approximately $2 million), the amount Bosti was due to receive
from its Russian subsidiary, or alternatively, €1,024,000 (which is approximately $1.1 million), the amount Bosti paid to
InspireMD Ltd., for the MGuard Prime EPS returned to InspireMD Ltd. On January 31, 2020, InspireMD Ltd. filed with court its letter
of defense in which it contested this matter vigorously. On January 21, 2021, we executed a Mediation Agreement with Bosti and
InspireMD Ltd., pursuant to which Bosti agreed to release the Company from all claims stated in the Complaint in exchange for
a payment of $580,000, which we paid on January 25, 2021.
As
of the date of this filing, we are not aware of any other material legal proceedings to which we or any of our subsidiaries is
a party or to which any of our property is subject, nor are we aware of any such threatened or pending litigation or any such
proceedings known to be contemplated by governmental authorities.
We
are not aware of any material proceedings in which any of our directors, officers or affiliates or any registered or beneficial
stockholder of more than 5% of our common stock, or any associate of any of the foregoing, is a party adverse to or has a material
interest adverse to, us or any of our subsidiaries.
Item
4. Mine Safety Disclosures.
Not
applicable.
PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.