Sleep Innovations Settles with Foamex

By Staff -- Home Textiles Today, 1/7/2008 12:00:00 AM

West Long Branch, N.J. —

Memory foam mattress and sleep products manufacturer Sleep Innovations and foam supplier Foamex have settled a lawsuit, with Sleep Innovations agreeing to pay $12 million for goods Foamex had delivered earlier.

The companies also said they have terminated their supply agreement.

Sleep Innovations had withheld the payment from Foamex pending the outcome of the litigation, according to a statement from both companies. Presidents and ceos Joseph Lynch at Sleep Innovations and Jack Johnson of Foamex said they were pleased to reach the agreement.

Both parties agreed to dismiss claims they had pending in the suit in U.S. District Court for the Eastern District of Pennsylvania.