Last checked at 13 Jan 2015 16:23
13 January 2015
Tullett Prebon plc
Settlement of New Jersey Superior Court Litigation
Tullett Prebon plc (the "Company") announces the settlement of the action taken by the Company and certain of its subsidiaries against BGC Partners Inc. ("BGC") in the New Jersey Superior Court, in response to the raid on the Company's business by BGC in the second half of 2009.
The Company's action alleged claims for racketeering, unfair competition, misappropriation of confidential information and trade secrets, and tortious interference.
The Company has today entered into an agreement with BGC under which BGC will pay $100m (£66m) to the Company to settle the litigation in the New Jersey Superior Court. In a prior ruling, the Judge had dismissed the Company's claim under the New Jersey racketeering law, and any damages that would have been awarded by the jury in the case would therefore not have been subject to trebling.
The settlement agreement also settles all other outstanding litigation between the parties, which will now be dismissed, and includes a clause that prevents either party hiring desk heads and senior management from the other for one year from the date of the agreement.
The $100m (£66m) settlement is in addition to the $33.3m (£19.5m) awarded to the Company's subsidiaries in the United States following the conclusion of the FINRA arbitration, which was announced in July 2014.
The Company has a duty to shareholders to seek to protect its legal rights and interests, and although legal action can be uncertain, protracted and expensive, the Company believes it is appropriate to take action in order to do so.
The exceptional item relating to the major legal actions between the Company and BGC that will be recognised in the 2014 financial statements, which does not include the $100m (£66m) settlement, is expected to be a net credit of £3.1m.
Enquiries:
Investors and Analysts Media
Paul Mainwaring Craig Breheny
Finance Director, Tullett Prebon plc Director, Brunswick Group LLP
Direct: +44 (0)20 7200 7995 Direct: +44 (0) 20 7396 7429
Mobile: +44 (0) 7974 982 429
Email: cbreheny@brunswickgroup.com