Psychemedics settles contract dispute for $500K; records Q2 charge

PSYCHEMEDICS CORP

Settled lawsuit with Transportation Insight LLC for $500,000 paid in three installments (first $166,667 in 30 days, then by Dec 2023 and Dec 2024).
Recorded a $500,000 settlement reserve in Q2 2023; company continues to deny liability and wrongdoing.
Settlement avoids potentially significant legal fees and management distraction from protracted litigation.
Agreement provides for dismissal of Georgia lawsuit (Case No. 2022CV369227) after payments; consent judgment secures obligation.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

PSYCHEMEDICS CORP entered into Confidential Settlement Agreement and Release with Transportation Insight LLC valued at $500,000.00 (effective 2023-07-17).

Action: entry
Agreement: settlement
Counterparty: Transportation Insight LLC
Value: $500,000.00
Effective: 2023-07-17

Exact text from the filing

On July 17, 2023, Psychemedics Corporation (the “Company”) entered into a Confidential Settlement Agreement and Release (“Agreement”) with Transportation Insight LLC, a consultant of the Company, to settle a lawsuit against it related to a contract dispute.

View on SEC.gov

Browse all material agreements →

PSYCHEMEDICS CORP filing history →

Source: SEC EDGAR

accession 0001171843-23-004597

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.