Rubicon settles US lawsuit
Net financial cost is ‘immaterial', company says.
Hot Topic
Hawke’s Bay
Investment company Rubicon [NZX: RBC] has settled a lawsuit in the United States, ending a $US53 million claim against the company and several other parties including its chief executive Luke Moriarty.
In a statement to the NZX this morning, Rubicon said it had agreed a confidential settlement in the litigation brought by employees of its US-based associate company ArborGen and the court action had been concluded.
In December last year, a South Carolina court found in favour of the plaintiffs in their action against Rubicon, ArborGen, International Paper, MeadWestvaco and several individuals.
Passing judgment, the court said “certain defendants engaged in a concerted, organised campaign using deception to mislead plaintiffs,” so that ArborGen would not have to honour an employee incentive scheme.
It awarded damages totalling $US10.8m to the nine current and former ArborGen staff involved in the action, as well as punitive damages of $US32.4m, plus interest and costs taking the amount to $US53.5m.
Rubicon said the confidential settlement would have no significant financial effect on its business.
“The net financial cost to Rubicon of that settlement is immaterial and, as far as Rubicon and its investment in ArborGen are concerned, there is no further financial impact from this lawsuit.”
It declined further comment.
The attorney for the plaintiffs was not immediately available for comment.
Follow NBR on Facebook, Twitter, LinkedIn and Instagram for the latest news and free on-demand audio from NBR Radio.
Tim Hunter
Thu, 24 Mar 2016
Thu, 24 Mar 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Rubicon settles US lawsuit
56759