ADA-ES (ADES) Shares Sell Off Following Norit Arbitration Decision
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ADA-ES, Inc. (Nasdaq: ADES) stock has plunged today, following an announcement from the Company that an arbitration panel in Atlanta, Georgia in the case of Norit Americas, Inc. v. ADA-ES, Inc., et al. has issued an Interim Award holding ADA liable for approximately $37.9 million dollars in damages for breach of a non-solicitation provision of a Market Development Agreement the Company entered into with Norit in 2001 and terminated in 2006, and further holding ADA jointly and severally liable together with several other ADA Defendants for payment of a royalty of 10.5% for 3 years and then 7% for an additional 5 years on the sales of activated carbon from the production facility owned by ADA Carbon Solutions, LLC in which the Company indirectly holds a minority interest, for misappropriation of certain Norit claimed trade secrets.
ADA-ES shares are down 34.1 percent on the day today.
Also from the release: "The Interim Award also dismissed Norit’s request for injunctive relief, assignment of an ADA patent, multiple trade secret claims as well as Federal RICO and civil conspiracy claims that Norit had asserted. The arbitration panel further ordered additional proceedings to address the timing and payment of the ADA Defendants’ obligations and the parties’ claims for recovery of attorneys’ fees after which time the Interim Award will be made final."
ADA-ES shares are down 34.1 percent on the day today.
Also from the release: "The Interim Award also dismissed Norit’s request for injunctive relief, assignment of an ADA patent, multiple trade secret claims as well as Federal RICO and civil conspiracy claims that Norit had asserted. The arbitration panel further ordered additional proceedings to address the timing and payment of the ADA Defendants’ obligations and the parties’ claims for recovery of attorneys’ fees after which time the Interim Award will be made final."
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