Hi-Shear Settles Ongoing Litigation
July 08 2009 - 5:41PM
Business Wire
Hi-Shear Technology Corporation (NYSE AMEX: HSR) today announced
that it has entered into a Settlement Agreement to close the
Company�s ongoing litigation with the United Space Alliance
(Alliance). The Settlement Agreement results in an increase to
operating income of approximately $1.8 million for the quarter
ended May 31, 2009.
Pursuant to the agreement, the Company shall: consider its
judgment against Alliance to be satisfied and dismiss its pending
actions in the Florida court of appeal and the U.S. Supreme Court,
and pay Alliance four equal payments of $400,000 each, over a 9
month period as settlement of Alliance�s claims for legal fees and
costs. This Settlement Agreement provides for mutual releases,
resolves all ongoing disputes with Alliance, and does not
constitute an admission of liability by any party. The Company has
previously accrued $3,275,000 in addition to $153,000 of interest
through February 28, 2009 regarding this litigation.
In addition, the Company will dismiss its amended complaint
against Pacific Scientific Energetic Materials in a related case
pending in Brevard County, Florida.
Hi-Shear Technology Corporation provides pyrotechnic,
mechanical, and electronic products to prime aerospace customers
for use in aerospace and defense markets where safety, performance
and high reliability are essential. It develops and produces
advanced systems and products that are primarily used worldwide in
space satellites, launch vehicles, national defense, and government
programs.
This release, as it relates to product announcements and other
Company matters, contains forward-looking statements, which are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that all forward-looking statements involve risks and uncertainties
including, without limitation, risks related to market acceptance
of and demand for the Company�s new products, dependence on the
uncertainty of government budgetary issues, primary government
contracts, and intellectual property rights.
For more information regarding this release or general
information about the company contact Ms. Linda A. Nespole,
310-784-7821.
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