Greenwood has agreed to give money to the former employees of a pharmaceutical company to settle a lawsuit against the failed biotech startup.
The city was Elona Biotechnologies’ largest creditor and has so far lost nearly $10 million on its investment.
Five Elona employees requested a total of $127,496 out of proceeds from auctioning the company’s assets last year, but they are accepting $3,000 each.
“We are very happy with that, and it’s one step closer to closing the Elona chapter,” city attorney Krista Taggart said.
A local court set aside $300,000 from the auction to more than cover back pay the five former employees requested. The workers were Matthew Skinner of Trafalgar, Jeffrey Rice of Mooresville, Judith McManama of Noblesville, Theodore Taylor of Fishers and David Stokell of Indianapolis.
The city invested about $8.5 million in loans and cash incentives in Elona Biotechnologies, which had planned to manufacture generic insulin in Greenwood. Elona ran out of money before it could get Federal Drug Administration approval for the medicine and went out of business in 2013.