Global-Tech Appliances Inc., manufacturer and marketer of floor care and small household appliances under the brand names DeLonghi, Dirt Devil, Electrolux, Eureka, Pentax, and Sunbeam, said it will appeal a final judgment that it infringed upon a patent.
John C.K. Sham, the company's President and CEO, said, "We have faith in the U.S. legal system and intend to aggressively and vigorously pursue an appeal to have any final judgment reversed or significantly reduced. In addition, we believe that our position will eventually prevail during the appellate process."
Mr. Sham concluded, "We have already accrued $4.65 million in connection with this litigation and plan to accrue an additional $3.7 million which, if reflected in the first quarter results of fiscal 2008, would add to the anticipated net loss for the quarter. This litigation, being related to kitchen appliances, is not expected to have a material impact on our future business and growth prospects."
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