Last checked at 15 Mar 2023 07:00
Dialight plc ("Dialight")
Sanmina litigation
As reported by Dialight previously, and most recently in its half-year results for the period ended 30 June 2022, Dialight has been involved in ongoing litigation with its former manufacturing partner, Sanmina Corporation ("Sanmina") in relation to the termination of their manufacturing services agreement.
Both parties issued formal legal proceedings in December 2019 and, following unsuccessful mediation at the beginning of 2022, Sanmina lodged a motion for summary judgment to dismiss certain elements of Dialight's claims and counter-claims.
The Court's ruling on Sanmina's dismissal motion (first filed on 2 May 2022) was released to the parties under seal on Tuesday 14 March 2023. The notification of this ruling is available at https://ecf.nysd.uscourts.gov. A final redacted version of the judgment (necessitated by the inclusion in the judgment of commercially confidential materials) should be published on or around 11 April 2023.
The court denied Sanmina's motion to dismiss Dialight's fraudulent inducement claim and denied its motion for summary judgment on Sanmina's accounts receivable claim. The court granted Sanmina's motion as to the dismissal of Dialight's willful misconduct claim. The fraudulent inducement claim, together with various claims and counter-claims relating to accounts receivable and accounts payable, will now proceed to trial, pending any appeal process. Following the court's examination of the evidence supporting Dialight's fraudulent inducement claim against Sanmina, and of other related matters, Dialight will now rigorously pursue its claims to trial.
If Dialight's claims are successful at trial, the range of outcomes could include the payment by Sanmina to Dialight of between $0 and c. $220m (excluding legal costs and judicial interest). If Sanmina's claim is successful at trial the range of outcomes could include the payment by Dialight to Sanmina of between $0m and $8.3m (excluding legal costs and judicial interest).
Contacts:
Dialight plc
Tel: +44 (0)203 058 3542
Fariyal Khanbabi - Group Chief Executive
Richard Allan - General Counsel & Company Secretary
About Dialight:
Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for industrial applications. Dialight's LED products are providing the next generation of lighting solutions that deliver reduced energy consumption and create a safer working environment. Our products are specically designed to provide superior operational performance, reliability and durability, reducing energy consumption and ongoing maintenance and achieving a rapid return on investment. The company is headquartered in the UK with operations in Australia, Dubai, Germany, Malaysia, Mexico, Singapore, the UK and the USA. www.dialight.com.
Notes:
1. This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018) and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations. On the publication of this announcement via a Regulatory Information Service ("RIS"), this information is considered to be in the public domain.
2. The person responsible for making this announcement is Richard Allan, General Counsel & Company Secretary of Dialight plc