Laser manufacturer IPG Photonics has reached a global settlement with German manufacturer TRUMPF resolving and dismissing the legal battle over patents between the two companies.
The settlement announced Tuesday follows two German court rulings against IPG, saying the Marlborough-based firm infringed on a TRUMPF-owned European patent in the use and design of specific adjustable mode beam lasers, such as those used in high-speed welding and cutting. Those rulings came in February and March.
Details of the settlement were not disclosed. IPG’s financial filings show the company spent $13.5 million to settle litigation matters in the first quarter.
IPG reported $265 million in revenue in the first quarter, a 17% increase from the same period in 2025. The company reported $99.5 million in profit, up from $89.8 million.
IPG’s stock fell on the Nasdaq on news of the settlement. Shares were about $84 each as of Tuesday afternoon, down 28% from the opening price. By comparison, the Nasdaq Composite rose 1% Tuesday.
Despite the decline, the company’s stock price is still up around 39% since the beginning of the year vs. 9% for the Nasdaq Composite.
The company was founded in Moscow in 1990 by Valentin Gapontsev, a former member of the Soviet Academy of Sciences Institute of Radio-engineering and Electronics. The firm eventually shifted its operations to Massachusetts, later establishing its headquarters in Marlborough.
IPG divested from the Russian market in 2024, citing the impact of sanctions related to the country’s invasion of Ukraine.
With 1,365 local employees, IPG is the sixth-largest manufacturer in Central Massachusetts, according to data provided to WBJ’s Research Department.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
