Sonitus Medical is Out of Business (SoundBite)

[ginsue]

Yes, I read it and it states " It ceased operations in mid-January, and is in the process of a liquidation sale."  But what about the bill.  Anybody else receive a bill?

[arizonajack]

But what about the bill.

You should know whether you owe it or not.

If you do owe it, it's your choice to pay it or not pay it.

Just understand that the company is not completely "out of business." It has suspended much of its operations and hired a company to handle its debts. But, from the point of view of its receivables it still has a right to collect for product that it has sold on which payments are due.

[JK123]

First time poster, but have been reading this forum for a few years now.

I was recently contacted by the same Debbie as another poster in this thread. I actually got my Soundbite device shortly after Sonitus Medical sent their email declaring their ceasing of business operations. I was given the option of paying half of my balance or returning the device and being charged nothing further. I'm trying to decide which to do, with my main concern being a lack of warranty. I'm curious what others have experienced regarding the reliability of the device? I also have to admit that I haven't been blown away by the device, although I think my expectations maybe were too high because it clearly transmits sound - I'm just not seeing it as big of a boost in noisy environments as I had hoped and I haven't had any improvement in directionality. Any thoughts would be welcome! 

[alabamajane]

First,, welcome!
I can't speak to the Soundbite as I have a Cochlear BAHA Device.

I was SSD for three years before getting it this past Dec. Like you, I feel I had too high expectations for it. I am not totally taken with it as some will tell you they are. It gives me sound, as you say, from that side; however, conversation is not that good. If you are SSD, as I suspect,, you won't get directionality from any device that I am aware of due to the fact that you don't have "hearing " on that side so all sound from any device goes to "good"ear to be heard.

Noisy environments are a problem for most hearing devices also.

Just my two cents worth,, I think I would cut my losses and return the device as you know there will probably not be any warranty or repairs in the future,,,,and you could perhaps get something that would be supported in the future and maybe give you better hearing,.,,,,you may be one that likes the BAHA better than I also.
Good luck to you whatever you decide. I'm sure some other Soundbite owners will be posting too.

Jane

[Lillygold]

I would return the device.

[arizonajack]

First time poster, but have been reading this forum for a few years now.

I was recently contacted by the same Debbie as another poster in this thread. I actually got my Soundbite device shortly after Sonitus Medical sent their email declaring their ceasing of business operations. I was given the option of paying half of my balance or returning the device and being charged nothing further. I'm trying to decide which to do, with my main concern being a lack of warranty. I'm curious what others have experienced regarding the reliability of the device? I also have to admit that I haven't been blown away by the device, although I think my expectations maybe were too high because it clearly transmits sound - I'm just not seeing it as big of a boost in noisy environments as I had hoped and I haven't had any improvement in directionality. Any thoughts would be welcome! 

If you've only been paying for a few months and still have a large balance I'd also suggest returning it and getting out from under, especially since you don't appear satisfied with the device's performance.

[dmc]

Here is the link to Sonitus Proof of Claim form, including unsecured claims:

http://www.proofofclaims.com/Sonitus/documents/

This form MUST be submitted before August 10, 2015.

I sent my form and enclosures with a tracking number, so delivery was confirmed. I enclosed a stamped, self-addressed envelope as suggested, for confirmation they received it, and it has not been returned to me.  This does not increase my confidence in the company handling the claims.  I intend to continually send faxes requesting response and will resend the entire package if needed.  I also included an explanation of why I deserve full reimbursement and why I think Sonitus provided misleading information to me.

[arizonajack]

I intend to continually send faxes requesting response and will resend the entire package if needed.  I also included an explanation of why I deserve full reimbursement and why I think Sonitus provided misleading information to me.

I seriously doubt that they'll be acknowledging receipt from anybody.

What was your justification for full reimbursement?

[dmc]

*  I feel strongly that I should be reimbursed for the entire Sonitus purchase, including related exam and other charges, because without the ongoing support and replacement that was promised, my investment of over $6,000 has little value.   I would never have even considered purchasing such a costly hearing device for less than two years of service.
*  I think the principals of Sonitus are directly responsible, because I was assured in 2013 that Medicare approval to cover the system was highly unlikely in the near future.  I was told that they had no reason to expect Medicare approval and that I should purchase the system without that expectation.
*  Only after I was reassured that Medicare would not cover the purchase if I waited to buy it, I agreed to pay the entire cost myself.  So the assertion by Sonitus that they couldn’t continue in business due to Medicare not approving the device for coverage is meaningless at best.
*  When I signed my agreement and started payments in 2013, they made it clear to me that they did not anticipate Medicare approval in the near future.   So how can they now claim that they are disappointed to inform their clients that unfortunately this is the reason they cannot continue in business?

To arizonajack, why do you say:  "I seriously doubt that they'll be acknowledging receipt from anybody."  The form requests a stamped, self-addressed envelope for the purpose of confirming receipt.

To anyone:  Is there a local, state, or national government agency responsible for overseeing a company handling claims of this type? 

Thank you.

[ANGuy]

*  I feel strongly that I should be reimbursed for the entire Sonitus purchase, including related exam and other charges, because without the ongoing support and replacement that was promised, my investment of over $6,000 has little value.   I would never have even considered purchasing such a costly hearing device for less than two years of service.
*  I think the principals of Sonitus are directly responsible, because I was assured in 2013 that Medicare approval to cover the system was highly unlikely in the near future.  I was told that they had no reason to expect Medicare approval and that I should purchase the system without that expectation.
*  Only after I was reassured that Medicare would not cover the purchase if I waited to buy it, I agreed to pay the entire cost myself.  So the assertion by Sonitus that they couldn’t continue in business due to Medicare not approving the device for coverage is meaningless at best.
*  When I signed my agreement and started payments in 2013, they made it clear to me that they did not anticipate Medicare approval in the near future.   So how can they now claim that they are disappointed to inform their clients that unfortunately this is the reason they cannot continue in business?

To arizonajack, why do you say:  "I seriously doubt that they'll be acknowledging receipt from anybody."  The form requests a stamped, self-addressed envelope for the purpose of confirming receipt.

To anyone:  Is there a local, state, or national government agency responsible for overseeing a company handling claims of this type? 

Thank you.

I agree with your entire assessment of their conduct.

[dmc]

Thanks, ANGuy for your validation of my statements.  I think those affected should let their experience be known on this forum or elsewhere.  The principals of Sonitus and also whoever is supposedly handling claims should feel the pressure.  The Assignee is named:  Sonitus (assignment for the enefit of creditors), LLC.  They certainly must have an obligation to creditors, including those with unsecured claims like the purchasers of the costly Sonitus Soundbite.  Where are they?  Why are they not doing a simple thing like returning a stamped, self-addressed enveloped enclosed in a claim package as instructed? 

Has anyone else completed and mailed the claim form?  It is a simple form that can be completed in minutes.  However, you may want to include copies of any backup information to support your claim.  Be sure to send it with some sort of proof of delivery or receipt.   

Here is the link to Sonitus Proof of Claim form, including unsecured claims:

http://www.proofofclaims.com/Sonitus/documents/

This form MUST be submitted before August 10, 2015.
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[arizonajack]

So do I. And I can understand everybody's anger and frustration from having spent a lot of money on a product that will no longer be serviced.

I just hope nobody thinks I'm defending the company.

All I'm trying to do is point out legal issues and realities that I'm aware of and I can guarantee that you won't like them.

Once the company liquidates all its assets it will pay off secured creditors first. Next in line are unsecured creditors to whom the company owes money from the purchase of goods and services.

Customers who have purchased product are generally not creditors unless they have purchased a service agreement that the company cannot honor and nobody else can because of the uniqueness of the product.

Those unsecured creditors MIGHT get offered pennies on the dollar but nobody is getting a full refund for any product that they have already fully paid for. It just isn't going to happen no matter how valid your reasoning appears to be.

It's just as if you bought a truck from GM, paid it off, and GM went out of business. (It didn't but it came close.) I don't think anybody would realistically imagine that they would get a full refund on the truck just because GM could no longer provide warranty service.

As for those customers who still have a balance due, those contracts are legally enforceable despite the financial condition of the company. They are called receivables and are a company asset that has value.

Those of you who have been offered the option of sending back the product with no further charges or paying only half the balance owed while keeping the product would be wise to choose whichever option makes better financial sense to you.

You might wonder why the company wants the product back if they are going to be out of business. Simple. Salvage value. There are companies that specialize in salvaging the elements that go into producing this equipment and will pay some for thousands of them. Even a few dollars per item can translate into thousands of dollars.

As for the acknowledgments in the stamped self addressed envelopes, you might get them eventually but I wouldn't hold my breath. They are probably just sitting in a pile while other things are being taken care of first. Besides, the deadline for a claim is August so I wouldn't expect any response until after that and not right away either. It's just the way those things work - very slowly.

As for the involvement of government agencies, yes, every state has some sort of consumer protection agency with which you can file a complaint if it makes you feel better. But that's about all it will do as the company is not doing anything illegal (as far as I can tell) that would necessitate a government agency getting involved.

[dmc]

Sonitus going out of business is not the same as GM going out of business.  If GM went out of business, there would be countless other companies competing to sell replacement parts and service to GM car owners.  My Sonitus Soundbite will eventually sit in a drawer until I decide my $6,000 purchase is totally useless and discard it.  In addition, as I said previously, I think it was misleading of Sonitus to confirm that Medicare would not pay for my device, thereby prompting me to pay the full price without insurance.  So they knew from the start they would not have Medicare approval.  They took in a lot of money from a lot of people during the time they had that knowledge until they closed their doors. 

[Joe D]

I suffered a sudden and complete hearing loss in my right ear in my late 40's while Soundbite was still in it's research phase. I found a little article in an audiologist's magazine while at an appointment and immediately started emailing Sonitus begging them to let me be a part of their trial/testing phase for the Soundbite. My job (law enforcement) obviously has a hearing requirement, and I was removed from my position of 20 plus years immediately because of my hearing loss. I drove hundreds of miles multiple times to become a guinea pig for the Soundbite, and still paid thousands of dollars to be one, but I did get my job back after I could pass a hearing test with the Soundbite in. I'm not sure what this means for me now. My Audiologist wrote to me that they would continue to be able to make adjustments to them if I needed that, but could not repair or replace any parts. The batteries in the soundbite wear out quickly and wont hold a charge after a while. Hopefully I will be able to find someone that may be able to take them apart and replace them. I feel fortunate that the Soundbite saved my job, but now I'm pretty nervous about what's going to happen when they stop working. I can't believe they went under so quickly. 

[arizonajack]

  I'm pretty nervous about what's going to happen when they stop working.

I suggest that NOW would be a good time to explore other methods in preparation for the inevitable demise of your Soundbite equipment.