Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) subsidiary Kollsman Inc. has been found guilty of misappropriation of trade secrets relating to two models of a commercial air data computer by the US District Court for the Western District of Tennessee.
The jury ruled in favor of the plaintiff Innovative Solutions & Support Inc (Nasdaq: ISSC) and against Kollsman and other defendants, 2 Inc., and Zachary Technologies Inc. The jury found that IS&S had suffered damages of just over $4.4 million in lost profits and $1.6 million in defendants’ net profits, for a total of over $6 million. The court can also impose exemplary damages and other costs against any or all of the defendants based on willful conduct.
Kollsman is evaluating its options and believes it has bases to appeal the verdict and to object to the imposition of any exemplary damages or other costs. Elbit System said that the verdict will be reflected in financial report for the third quarter, but that it would have no material affect.
In a separate development, Elbit Systems said that it will merge with subsidiary Tadiran Communications Ltd., which will cease to exist as an independent legal entity. Elbit Systems will establish a new subsidiary, Elbit Systems Land and C4I - Tadiran Ltd., which will assume the activity of both Tadiran Communications and that of Elbit Systems' Land and C4I Division.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2007
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