Noble Int'l (NOBL) Receives $16.3M Litigation Award Regarding Acquisition of Pullman

September 4, 2008 4:56 PM EDT
Noble International, Ltd. (Nasdaq: NOBL) today announced that its wholly-owned subsidiary, Noble Tube Technologies, LLC, received a litigation award of $16.3 million relating to Noble's 2006 acquisition of Pullman Industries, Inc.

The litigation award was a result of Noble's claims that the former Pullman shareholders intentionally breached certain representations and warranties contained in the acquisition agreement. As a result of the award, Noble will not pay any of the $14 million of contingent consideration it had reserved for payment to the former shareholders pursuant to the acquisition agreement, and received an additional $2.3 million that was held in an escrow account pending resolution of the litigation. In addition, the Company will reverse approximately $1.7 million of accrued interest that may have become payable contingent upon the outcome of the litigation. This $18.0 million of pre-tax income will be reflected in the Company's third quarter results.

Noble International, Ltd., through its subsidiaries, provides laser-welded blanks, tubular products, and roll-formed products for the automotive industry primarily in North America and Europe.

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