American Dental Partners
shares soared Thursday after the company, which provides business services to dental group practices, settled with PDG, a doctor group affiliated with PDHC, one of the company's Minnesota subsidiaries.
On Dec. 12, a U.S. jury found American Dental Partners liable for compensatory damages of $88.29 million for breach of service agreement, and on Dec. 13, also awarded PDG punitive damages of $42.25 million for interference with contract and prospective advantage.
Under the settlement announced Thursday, American Dental Partners agreed to transfer leases and associated assets related to 25 of 31 Park Dental facilities to the doctor group and to forgive $3 million in outstanding accounts receivable. American Dental Partners will also provide interim management services to PDG for up to nine months, for which the doctor group will pay the company a management fee of $19 million.
Shares surged $4.87, or 88%, to $10.39 in recent trading.