Cybex Reaches Settlement in Barnhard Product Liability Suit
Cybex International, Inc. (NASDAQ: CYBI) announced today that it has reached a settlement in the product liability litigation, Barnhard v. Cybex International, Inc. Pursuant to the settlement, Cybex will pay to the plaintiff, net of insurance, approximately $19,500,000 of which approximately $18,500,000 will be paid at the consummation of the settlement with the balance paid over seven years.
As part of the settlement, Cybex will be released of all further liability with respect to the litigation, which will be dismissed with prejudice. Cybex will satisfy its cash obligation through available cash, its existing line of credit and additional financing, which it is in the process of arranging with its principal bank.
The settlement is subject to standard closing conditions, including the execution of a definitive settlement agreement by Cybex, the plaintiff and the third party defendant. Cybex anticipates that all conditions will be satisfied and funds disbursed within the next 30 days.
As previously reported, Cybex currently is subject to possible de-listing from the Nasdaq Stock Market due to its failure to comply with the Nasdaq requirements for a minimum stockholders' equity of $10,000,000 a minimum bid price for its common stock of $1.00 per share and a minimum market value of publicly held shares of $5,000,000 Cybex is analyzing the impact the settlement will have on its financial statements. However, looking forward, Cybex is confident that, once the settlement is reflected in the Company's financial statements, its stockholders' equity will exceed the $10,000,000 minimum required by Nasdaq.
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