Imation, Quantum and Maxell Settle All Legal Claims
Press release from the issuing company
Companies Reaffirm Commitment to Providing Customers with High Quality, Reliable Tape Media Products and Expanding DLTtape Media Market
OAKDALE, Minn.-May 29, 2002-- Imation Corp., today announced that the company, Quantum Corporation and Maxell have settled all legal claims between the companies over the qualification, production and sale of DLTtape media products. Quantum and Imation also have committed to completing qualification of Imation as a manufacturer of DLTtape media.
As a result of the settlement, Imation has dismissed its antitrust lawsuit against Quantum and Maxell. All counterclaims filed by Quantum and Maxell arising from this dispute have also been withdrawn as part of the settlement.
The settlement will benefit Imation's ongoing business results. In addition, Imation will recognize pre-tax income in excess of $5 million in 2002, associated with the cash portion to be received over the next 18 months. Further financial details of the settlement were not disclosed.
Quantum and Imation issued the following joint statement regarding the settlement: "Both companies are pleased that this dispute has been settled. We reaffirm our commitment to serving the needs of customers for high quality, reliable tape products and expanding the DLTtape media market in a competitive environment. We also look forward to Imation's continued participation in this market as a manufacturer of DLTtape media once it completes qualification."
"This settlement is a win-win for all parties," said Bill Monahan, Imation Chairman and CEO. "It is positive for Imation, our shareholders and customers as it enables us to compete profitably in the DLTtape and Super DLTtape markets in 2002 and beyond. The settlement also gives us a solid basis to work with the other companies to strengthen the DLTtape market."
Frank Russomanno, Vice President of Data Storage Media and Services for Imation, said: "We are pleased with this settlement that ensures our customers will continue to have multiple sources of quality DLT tape products to meet their requirements for reliable tape backup and archiving solutions. As a leading manufacturer and supplier of high quality removable data storage media we look forward to working with Quantum to complete qualification of Imation as a manufacturer of DLTtape media."
Imation also announced its intention to enter the market with Super DLTtape products as part of the settlement.
Last October 1st, Imation filed a federal antitrust lawsuit against Quantum. Imation later amended the complaint to include Maxell and to address Imation's participation in the Super DLTtape market. Quantum filed a counterclaim in California state court, alleging Imation violated Quantum's trade secrets. Maxell filed a counterclaim in federal court, alleging Imation engaged in false advertising. All of the suits are dismissed as a result of the settlement.
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