3M (MMM) Awarded Legal Fees, Costs in BacLite Case
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3M (NYSE: MMM) announced today that the High Court of the United Kingdom not only reaffirmed a prior judgment granting 3M a decisive victory in a London trial proceeding, but also further awarded 3M litigation fees and costs in the case. The case concerns 3M’s decision to cease its support for BacLite, a product it acquired from Acolyte Biomedica Limited in 2007. 3M has now prevailed on virtually every important issue of the dispute.
Porton Technology Fund, Porton Capital, Inc. (together, “Porton”) and Ploughshare Innovations Limited, a subsidiary of the U.K. Ministry of Defence (collectively “Claimants”), investors in Acolyte, filed a lawsuit in December 2008 against 3M seeking approximately $40 million in damages. A 24-day bench trial occurred from June 15 – July 18, 2011. Today, the High Court reaffirmed a decision, dated November 7, 2011, that Claimants will receive only $1.3 million in damages (to be converted to pounds sterling at the exchange rate effective July 9, 2010), plus interest.
Because the final judgment of $1.3 million was for an amount less than 3M had offered to settle the matter before trial, the High Court ordered Claimants to pay the litigation fees and costs that 3M incurred in the lawsuit after March 3, 2011. In addition, because 3M prevailed on most of the issues disputed at trial, the High Court also denied Claimants 25 percent of the fees and costs they incurred before March 3, 2011. While the actual amount of the fees and costs to be paid will be determined in later proceedings, these findings mean that 3M will likely receive a net payment from Claimants after appropriate offsets.
The U.K. High Court also denied Claimants’ request for permission to appeal.
Significantly, while the order resolves the claims in the U.K. High Court, a defamation lawsuit filed by 3M is going forward. The federal court in Washington, D.C. issued an opinion on February 2, 2012, that 3M’s defamation claims against lawyer and public relations advisor Lanny Davis survived Davis’ motion to dismiss and, in a matter of first impression, rejected Davis’ attempt to use the District of Columbia’s Anti-SLAPP Act (Strategic Lawsuit Against Public Participation) in federal court.
The opinion from U.S. District Court Judge Robert L. Wilkins allows the case against Davis to continue. The court decision does not address 3M’s pending claims against Harvey Boulter.
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Porton Technology Fund, Porton Capital, Inc. (together, “Porton”) and Ploughshare Innovations Limited, a subsidiary of the U.K. Ministry of Defence (collectively “Claimants”), investors in Acolyte, filed a lawsuit in December 2008 against 3M seeking approximately $40 million in damages. A 24-day bench trial occurred from June 15 – July 18, 2011. Today, the High Court reaffirmed a decision, dated November 7, 2011, that Claimants will receive only $1.3 million in damages (to be converted to pounds sterling at the exchange rate effective July 9, 2010), plus interest.
Because the final judgment of $1.3 million was for an amount less than 3M had offered to settle the matter before trial, the High Court ordered Claimants to pay the litigation fees and costs that 3M incurred in the lawsuit after March 3, 2011. In addition, because 3M prevailed on most of the issues disputed at trial, the High Court also denied Claimants 25 percent of the fees and costs they incurred before March 3, 2011. While the actual amount of the fees and costs to be paid will be determined in later proceedings, these findings mean that 3M will likely receive a net payment from Claimants after appropriate offsets.
The U.K. High Court also denied Claimants’ request for permission to appeal.
Significantly, while the order resolves the claims in the U.K. High Court, a defamation lawsuit filed by 3M is going forward. The federal court in Washington, D.C. issued an opinion on February 2, 2012, that 3M’s defamation claims against lawyer and public relations advisor Lanny Davis survived Davis’ motion to dismiss and, in a matter of first impression, rejected Davis’ attempt to use the District of Columbia’s Anti-SLAPP Act (Strategic Lawsuit Against Public Participation) in federal court.
The opinion from U.S. District Court Judge Robert L. Wilkins allows the case against Davis to continue. The court decision does not address 3M’s pending claims against Harvey Boulter.
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