Molekule announces dismissal of trademark infringement complaint

Molekule Group (MKUL) announced that a civil complaint previously filed against the Company has been favorably resolved with all claims against the Company dismissed by the Court with prejudice. The complaint was filed on August 11, 2022, in the U.S. District Court for the Southern District of New York, Case No. 7:22-cv-06842- PMH by Sterilumen, a wholly-owned subsidiary of Applied UV (AUVI). Sterilumen’s complaint sought $20 million dollars in damages against the Company for, among other claims, alleged trademark infringement and unfair business competition. In response, the Company filed counterclaims contesting the validity of Sterilumen’s trademark rights and seeking money damages for fraudulent registration thereof. By its Order dated March 13, 2023, the Court agreed with Molekule’s position and ruled the Action dismissed with prejudice. Molekule subsequently reached a favorable agreement with Sterilumen to forgo pursuing Molekule’s Counterclaims, among other things. As a result, Sterilumen’s claims against Molekule’s trademarks are permanently barred and Sterilumen has waived its right to appeal the Order. The Company achieved this outcome without having to compensate Sterilumen in any manner, and its legal expenses were covered by an insurance policy.