Sonitus Medical is Out of Business (SoundBite)

[JB914]

Just got this email.  And they owe me $2000 for an overcharge.

Dear Customer,
 
As you may know, the Centers of Medicare and Medicaid Services (CMS) recently made decisions to restrict coverage of novel solutions for hearing loss, with consequences for patients, clinicians, and future innovation.  In the wake of these decisions and after pursuing all alternatives, Sonitus Medical has ceased operations with deep regret.
 
The company is still exploring a transaction for the assets of the business, and depending on the outcome of that process, you may be contacted by a future owner.  Due to the constraints of this process, we are unable to respond to customer inquiries or to complete any orders that are not yet shipped.
 
We appreciate your belief in the importance of a novel nonsurgical option, and it has been a privilege to provide service to you.
 
Best regards,
 
Sonitus Medical
Makers of the SoundBite Hearing System

[Lillygold]

I got the email too. I was making payments so I guess I stop the automatic payments. Interesting that this happened so quickly and can not contact anyone.

[JB914]

I already had to have my microphone replaced.     Hopefully there will be a way to still get that fixed in the future. 

I got an EOB from my insurance that showed i overpaid by $2700. I have been trying for the past 45 days to get my $2700 back.  I was told a few weeks ago by the head of Finance at Soundbite they would either credit back my card or issue a check.  Never happened.   

[Lillygold]

That is terrible. My audiologist was shocked by it all. They are trying to figure out what to do

[arizonajack]

I was making payments so I guess I stop the automatic payments.

Be careful about that.

They might not be selling and servicing anymore but I'll bet dollars to donuts they'll enforce existing receivables.

[Lillygold]

Interesting thought

[ANGuy]

I still wouldn't pay them.  They're not going to be around to uphold their end of the bargain, let them pound salt on their collections.

[Lillygold]

If they are not in business and have not notified us of who is taking over the company who do you pay

[jbacon26]

I sent both mouth pieces back for repair in December and got the email that they were no longer in business. They kept my devise I paid out of pocket for. Needless to say I am quite upset and can't afford to replace it with anything else. My audiologist was just as shocked. They didn't get any warning or notice either. I guess this leave me out several thousand dollars.

[CHD63]

I am not a SoundBite wearer.  However, I have followed this product since it was introduced.

If I had invested money in this product and they had my device for repairs, I certainly would follow all avenues possible to either receive my repaired device or my money back.  If they are able to sell the company to another company, the new company surely would have to honor repairs in progress.  If they are in bankruptcy, you should be able to recover some of the money spent.

What a mess for the unsuspecting patient/consumer!

Medicare/medicaid has never paid for hearing aids that were not implanted in a person's body.  I am not quite sure why Sonitus thought CMS would change its mind for this removable device.

Just my thoughts .....

Clarice

[keithmac]

I am not a SoundBite wearer.  However, I have followed this product since it was introduced.

If I had invested money in this product and they had my device for repairs, I certainly would follow all avenues possible to either receive my repaired device or my money back.  If they are able to sell the company to another company, the new company surely would have to honor repairs in progress.  If they are in bankruptcy, you should be able to recover some of the money spent.

What a mess for the unsuspecting patient/consumer!

Medicare/medicaid has never paid for hearing aids that were not implanted in a person's body.  I am not quite sure why Sonitus thought CMS would change its mind for this removable device.

Just my thoughts .....

Clarice

This is good general advice but a buy-out company may not (is unlikely to) accept outstanding repair and warranty liabilities of the failed company.  Nothing to lose by trying, though.

[mom of AN pt.]

OMG this is awful.  My daughter got one last Spring...we actually got payment from our insurance...but what is distressing to me is there will never be further development...or replacements if needed in the future.  I am very sad,...very upset!

[Lillygold]

Yes, it is sad

[JB914]

OMG this is awful.  My daughter got one last Spring...we actually got payment from our insurance...but what is distressing to me is there will never be further development...or replacements if needed in the future.  I am very sad,...very upset!

This is what bothers me the most, I now have the device, but, no way to get it repaired.   

 

[arizonajack]

I found the following article online but haven't been able to confirm the bankruptcy filing mentioned in the last paragraph. I checked PACER which is the US Court case search portal and came up empty. I'll check again at some point. It's just possible that it hasn't been entered into the court system yet.

Those of you who are making payments on your Sounbite might be paying finance companies and not Sonitus. If you are paying directly to Sonitus and bankruptcy has been filed then the money is being supervised by the US Bankruptcy Trustee and will be used to pay off the company's secured creditors after which there is likely to be nothing left to apply to unsecured creditors or warranty work.

The company may have closed its doors and is not conducting normal business or warranty work but they aren't "out of business" with regard to receivables. There is still a business entity there for the purpose of collecting incoming revenue and is likely to remain until all remaining revenue is collected and the company is officially dissolved under the US Bankruptcy laws.



Sonitus Medical to Hold Auction After Closing Its Doors
Published on February 10, 2015

Sonitus Medical, San Mateo, Calif, announced on February 9, 2015 that it has closed its doors, and the company facility and its equipment will be up for auction in the next 2 weeks. According to Sonitus, this is an opportunity for hearing healthcare clinics and hearing aid manufacturers to purchase metrology equipment and testing tools at lower-than-market prices. A global online auction of all Sonitus Medical’s items will be held on February 18 and 19, 2015.

Some of the items available for purchase from Sonitus Medical include electronic test and measurement equipment, clinical audiometers, battery analyzers, test chambers, microscopes, scanners, test benches, office furniture, and more. A complete list of hearing healthcare assets available for purchase can found on the Sonitus Medical page on the Silicon Valley Disposition (SVD) website.

Sonitus Medical is the maker of the Soundbite Hearing System, a non-surgical bone conduction hearing device intended to be used as an alternative to hearing aids for people with single-sided deafness. The company reportedly filed for bankruptcy in mid-January 2015.