Elyria, Ohio Invacare Corp. and Graham-Field Health Products announced in January 1999 that the companies have settled all lawsuits filed in April 1998. Invacare sued Graham-Field, alleging that the Hauppauge, N.Y.-based company had refused to pay $2.36 million owed for products purchased by two of its subsidiaries, Everest & Jennings and Medapex. In a countersuit, Graham-Field alleged that Invacare did not honor certain contracts with its subsidiaries, company officials said.

As part of the settlement, Invacare has received $2.2 million from Graham-Field associated with the prior product purchases. In addition, Invacare and Graham-Field have entered into a cross-licensing agreement regarding certain patents owned by each company. The agreement includes a two-year contract in which Graham-Field will supply its LaBac seating systems to Invacare's home medical equipment providers under a single invoice program.

The companies also have formed a three-year pact in which Invacare's wholly-owned subsidiary, Dynamic Controls, will supply Everest & Jennings with electronic controls for power wheelchairs, company officials said.

Following the release of its fiscal 1997 earnings, which were lower than expected, Graham-Field was hit with a number of shareholder lawsuits. At the time of the earnings announcement, Invacare officials said that, given Graham-Field's financial difficulties, it was "obligated" to take formal steps to force the company to honor its contractual obligations.

Graham-Field's financial standing improved in 1998, with a 33 percent increase in revenue for the third quarter ended September 30, 1998, to $94,516,000, compared with the third quarter of 1997. The increase in revenue was primarily attributable to six acquisitions completed in 1997, including the Fuqua acquisition, the growth of the company's GF Express program and the expansion of the company's Consolidation Advantage Program.-M.L.