JDA Software (JDAS) Enters Settlement with Dillard’s (DDS); to Pay Lower Fee Following Appeal
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JDA Software Group, Inc. (Nasdaq: JDAS), has entered into a settlement agreement with Dillard’s, Inc. (NYSE: DDS) which brings to conclusion a litigation matter related to a software license and service agreement between i2 Technologies, Inc. (i2) and Dillard’s, Inc. (Dillard’s) that originated in 2000. JDA acquired i2 in January of 2010.
Under the terms of the settlement agreement, i2 agreed to pay $57 million to Dillard’s for final and full resolution of any and all claims against the Company. In June 2010, the litigation matter was adjudicated in Dillard’s favor and a judgment entered in the amount of $237 million. i2 appealed that judgment and the matter had been pending in the court of appeals. JDA posted a bond in 2010, backed by $25 million, which will be released back to the Company. That cash, as well as approximately $3 million in expected insurance proceeds and cash on hand, will be used to pay the settlement. JDA had more than $320 million of cash on hand as of September 30, 2011. The Company expects to take a pre-tax charge of $35 million in the fourth quarter 2011, which represents the settlement amount, net of insurance recoveries, less amounts previously accrued in the financial statements.
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Under the terms of the settlement agreement, i2 agreed to pay $57 million to Dillard’s for final and full resolution of any and all claims against the Company. In June 2010, the litigation matter was adjudicated in Dillard’s favor and a judgment entered in the amount of $237 million. i2 appealed that judgment and the matter had been pending in the court of appeals. JDA posted a bond in 2010, backed by $25 million, which will be released back to the Company. That cash, as well as approximately $3 million in expected insurance proceeds and cash on hand, will be used to pay the settlement. JDA had more than $320 million of cash on hand as of September 30, 2011. The Company expects to take a pre-tax charge of $35 million in the fourth quarter 2011, which represents the settlement amount, net of insurance recoveries, less amounts previously accrued in the financial statements.
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