In 2009, CIAC purchased a specific contingency insurance policy under which the insurer agreed to indemnify CIAC for covered losses incurred as a result of a final adjudication entered in the underlying litigation which resulted in a revised final judgment amount that was less than the $12.5 million final judgment covered under the policy (hereinafter, “verdict insurance”). As a result of the reversal of the District Court's judgment described above, in September 2011, CIAC submitted a claim under the insurance policy and received $12.5 million in verdict insurance proceeds.
Cost of Revenues and Other Operating Income (in thousands):
|Three Months Ended September 30,|
|Inventor royalties and noncontrolling interests||$||15,592||$||17,615|
|Contingent legal fees||12,328||9,739|
|Verdict insurance proceeds related costs||7,661||-|