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(Alliance News) - Education services firm Tribal Group PLC on Friday said it has signed an agreement to pay GBP8.9 million to settle a royalty dispute with its software platform provider.
In 2019, the company said it it was "in dispute" with a platform software supplier on which some of its products are based over historic royalties and said it received a letter of claim. The letter stated that Tribal failed to account properly for royalties under the terms of a value added reseller agreement dated April 1, 2000, and had therefore breached the terms of the agreement.
The letter estimated the lost amount at between GBP15 million and GBP30 million.
At the time, Tribal said it did not believe the claim was justified, adding that it would defend them "vigorously".
On Friday, the company said it will pay GBP8.9 million for full and final settlement of past royalty disagreements. The amount will be paid from its cash resources.
Tribal also said it has entered into a new 10-year value added reseller agreement, effective from January 1. The new agreement "provides a platform from which we can develop new modules and enhanced functionality."
The stock was down 4.9% at 64.15 pence each on Friday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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