ROCK HILL, S.C., Oct. 26, 2015 (GLOBE NEWSWIRE) -- 3D Systems (NYSE:DDD) announced today that it has received a decision from a private arbitration dispute arising out of the company's acquisition of Print3D Corporation in 2011 and that it intends to challenge the decision in federal court. 3D Systems disagrees with the single arbitrator's findings and conclusions and believes the arbitrator's decision exceeds his authority and disregards the applicable law.
On August 23, 2013, a former Company employee filed a lawsuit against the Company in the United States District Court for the District of Hawaii, alleging several causes of action related to the acquisition of Print3D Corporation (of which the former employee was a 50% shareholder). The lawsuit alleges that the Company breached a purchase agreement in order to avoid paying the former employee additional monies pursuant to earn out provisions in the agreement. The lawsuit was transferred to the District Court for the Western District of North Carolina, which court compelled arbitration. The arbitration took place in June 2015 and on October 16, 2015, the arbitrator issued an award in favor of the former employee with respect to certain alleged breaches of contract and implied covenants by the Company. The arbitrator found that the Company did not commit fraud or make any negligent misrepresentations to the former employee.
Pursuant to the arbitral award, the Company is to pay approximately $11.3 million which includes actual damages of $7.3 million, fees and expenses of $2.3 million and prejudgment interest of $1.7 million.
Andrew Johnson, Executive Vice President and Chief Legal Officer of the Company, stated "We were extremely disappointed with the decision of the arbitrator. We firmly believe the arbitrator's ruling is not supported by the facts of this case or the agreement between the parties. We are reviewing our options with our legal counsel and fully intend to challenge the ruling in federal court. Notwithstanding our right to appeal, given the arbitrator's decision, we expect to record an expense provision for this matter in the quarter ending September 30, 2015. The provision is subject to adjustment based on the ultimate outcome of our appeal. However, we do not believe that the award will impact our ability to realize our existing business plans in the short or long term."
If it is ultimately determined that money is owed following the full appellate process in federal court, the Company intends to fund any amounts to be paid by it from cash on hand.
Learn more about 3DS' commitment to manufacturing the future today at www.3dsystems.com.
About 3D Systems
3D Systems provides the most advanced and comprehensive 3D digital design and fabrication solutions available today, including 3D printers, print materials and cloud-sourced custom parts. Its powerful ecosystem transforms entire industries by empowering professionals and consumers everywhere to bring their ideas to life using its vast material selection, including plastics, metals, ceramics and edibles. 3DS' leading personalized medicine capabilities include end-to-end simulation, training and planning, and printing of surgical instruments and devices for personalized surgery and patient specific medical and dental devices. Its democratized 3D digital design, fabrication and inspection products provide seamless interoperability and incorporate the latest immersive computing technologies. 3DS' products and services disrupt traditional methods, deliver improved results and empower its customers to manufacture the future now.
Leadership through Innovation and Technology
- 3DS invented 3D printing with its Stereolithography (SLA) printer and was the first to commercialize it in 1989.
- 3DS invented Selective Laser Sintering (SLS) printing and was the first to commercialize it in 1992.
- 3DS invented and commercialized its patented, ground-breaking force-feedback haptic devices in 1993.
- 3DS invented the ColorJet Printing (CJP) class of 3D printers and was the first to commercialize 3D powder-based systems in 1994.
- 3DS invented MultiJet Printing (MJP) printers and was the first to commercialize it in 1996.
- 3DS pioneered virtual surgical simulation (VSSTM) and virtual surgical planning (VSP®) as part of its portfolio of leading 3D healthcare products and services.
- 3DS pioneered scan-based design with the release of the patented Geomagic Design X (XOR) software in 2006.
Today its comprehensive range of 3D printers is the industry's benchmark for production-grade manufacturing in aerospace, automotive, patient specific medical device and a variety of consumer, electronic and fashion accessories.
More information on the company is available at www.3dsystems.com.
Source:3D Systems Corporation