---
schema_version: "secwatch.filing_event.v1"
accession: "0001171843-23-004597"
form_type: "8-K"
ticker: "PMDI"
cik: "0000806517"
company_name: "PSYCHEMEDICS CORP"
filed_at: "2023-07-21T23:59:59+00:00"
generated_at: "2026-06-13T05:14:57.915559+00:00"
event_type: "litigation"
sentiment: "negative"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001171843-23-004597
- form_type: 8-K
- ticker: PMDI
- cik: 0000806517
- company_name: PSYCHEMEDICS CORP
- filed_at: 2023-07-21T23:59:59+00:00
- event_type: litigation
- sentiment: negative
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/806517/000117184323004597/0001171843-23-004597-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/806517/000117184323004597/f8k_072023.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001171843-23-004597
- JSON: https://secwatch.observer/filing/0001171843-23-004597.json
- Plain text: https://secwatch.observer/filing/0001171843-23-004597.txt

## Key facts
- Material Agreements
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/806517/000117184323004597/0001171843-23-004597-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.