Sonitus Medical is Out of Business (SoundBite)

[zspaul]

My charger just broke and I'm freaking out. What do I do?

[JB914]

got email today from Sonitus:

Dear SoundBite Customer,
 
As you know from an earlier communication, Sonitus Medical, Inc ("Sonitus" or "Company") was forced to discontinue operations as of this past January 9, 2015 in the wake of decisions by the Centers of Medicare and Medicaid Services (CMS) to restrict coverage of novel solutions for hearing loss.  We are now aggressively pursuing a sale with the goal of finding a home for our technology and support for SoundBite customers.  We do not have a specific timeline for these activities, but are targeting a final resolution in the next 60 days and ask for your continued patience.
 
As part of this process, the Company has entered into a process on February 4, 2015 known as an Assignment for the Benefit of Creditors (“ABC”) to protect the assets of the Company and expedite the sale process.  Within 30 days from the date of the ABC you will be receiving an official email regarding the process and the potential for future support.  Due to the constraints of this process and with our apologies in advance, we are no longer staffed to respond to ongoing inquiries at this time.
 
Best regards,
 
Sonitus Medical
Makers of the SoundBite Hearing System

[wintersmd]

JB

I got the same email yesterday.  Very setting not knowing how to get repairs made.


got email today from Sonitus:

Dear SoundBite Customer,
 
As you know from an earlier communication, Sonitus Medical, Inc ("Sonitus" or "Company") was forced to discontinue operations as of this past January 9, 2015 in the wake of decisions by the Centers of Medicare and Medicaid Services (CMS) to restrict coverage of novel solutions for hearing loss.  We are now aggressively pursuing a sale with the goal of finding a home for our technology and support for SoundBite customers.  We do not have a specific timeline for these activities, but are targeting a final resolution in the next 60 days and ask for your continued patience.
 
As part of this process, the Company has entered into a process on February 4, 2015 known as an Assignment for the Benefit of Creditors (“ABC”) to protect the assets of the Company and expedite the sale process.  Within 30 days from the date of the ABC you will be receiving an official email regarding the process and the potential for future support.  Due to the constraints of this process and with our apologies in advance, we are no longer staffed to respond to ongoing inquiries at this time.
 
Best regards,
 
Sonitus Medical
Makers of the SoundBite Hearing System
[/quote]

[zspaul]

Good news on my charger, I received a tip from another member that it might be that I shorted the power adapter and not the actual docking station (all 3 lights weren't working), so I tried with a different 5V-USB wall charger and it works again! I'm still pretty anxious about the future of Soundbite support, but at least I'm not without the device until they get their act together.

[ginsue]

I have never received an email and thought that it was odd that somebody called me to tell me that they were no longer taking automatic payments from my checking. They wondered if I could start mailing them the checks.  I have 3 payments left of $83.33 equaling $249.99.  Whom ever called stated I owed over $300 and gave me an address in Mountain View CA.  This address is a business consulting/ liquidation firm listed as
Sherwood Partners, Inc.
 1100 La Avenida Street, Building A
 Mountain View, CA 94043 

Phone: 650-454-8001
 Fax: 650-454-8040

E-mail: info@shrwood.com

I think I will be giving them a call.  If there is no longer a company to service my Soundbite then I see no reason to pay my balance.

[arizonajack]

I think I will be giving them a call.

Make sure you insist that they provide documentation that authorizes them to collect for Sonitus or the bankruptcy court (if applicable) before you do anything else.

If there is no longer a company to service my Soundbite then I see no reason to pay my balance.

Wrong.

You have a contract. You are bound by it. One way or another there will be a successor entity that's entitled to the money.

[ginsue]

They have not filed bankruptcy but have hired a liquidation firm as alternative to bankruptcy.

"Sherwood Partners is one of the leading advisory firms in alternative solutions to bankruptcy. These wind-down services are called Assignments for the Benefit Of Creditors (ABCs) or Managed Liquidations. " states their website

[arizonajack]

They have not filed bankruptcy but have hired a liquidation firm as alternative to bankruptcy.

I would still be looking for some written documentation before sending any money.

But that's just me.

[ginsue]

I called the firm and they were very surprised to hear from me since they blocked their number and the person who called gave me a fatuous name.  They said that they would have the person in charge of that account email a document of such and call if there is an further questions.  Thanks for the advise.   

[ginsue]

I keep on watching my email and spam folder. Nothing yet.  I will keep you posted.

Sue

[Bluestreak]

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.

Depending on what any future problem with your daughter's device might be, all is not lost. The Soundbite, for all it's novel design, has many components common to the hearing aid industry and a competent hearing aid repair facility may be able to help you. The BTE component is very similar to such units in the industry and many simple repairs are possible. The charger is a fairly simple device and like most electronic devices, the cables and connectors are the most likely causes of failure but can be checked and possibly repaired by an electronics repair technician or other person familiar with battery chargers and small power supplies.

Good Luck!

[Lillygold]

I stopped my automatic payment so I am interested also in who I pay or if the item can be returned since they are out of business.

[arizonajack]

I stopped my automatic payment so I am interested also in who I pay or if the item can be returned since they are out of business.

That probably was not a good idea. I noted earlier that Sonitus is not "out of business." It still exists, it just isn't doing any new business nor providing services for old business.

You still have a contract to pay for the items you purchased and you've just breached it.

I doubt if your contract allows you to cancel and return the items. Read it.

If your contract is with Sonitus I suggest you contact that Sherwood Partners mentioned earlier and make arrangements to continue paying lest you end up with a collection agency on your tail and trashed credit.

If your contract is with a third party finance company, call that company and make arrangements to continue your payments or pay off the balance.

I would caution anybody reading this that Sonitus is entitled to its money for items already sold and has a right to enforce those contracts.

[alabamajane]

Just my two cents as I have "no dog in the hunt",,,,

But as I see it, Jack is saying " you are  breaching your contract by not paying for what you got,, Soundbite,, but they have breached your contract by not upholding their end in providing any support for item they sold you ,and "quitting business ",,, plus I wouldn't  be paying anyone without written evidence from a court as to why I should be paying someone else instead of whom I contracted with.... All too strange!!

[Lillygold]

My contract says after one year I can return item if not satisfied. I will contact the mentioned company. What a mess.