Johnson Outdoors Inc. has reached a settlement agreement with Confluence Holdings Corp. that will end a long-standing intellectual property dispute between the two companies. While the terms of the agreement are confidential, the settlement does not constitute an admission of wrongdoing by either party and includes a one-time payment by Johnson Outdoors of $4.4 million. The payment is expected to have an unfavorable impact on Q307 earnings for JOUT. Johnson Outdoors said it has made an insurance claim to cover the payment, but it does not expect resolution of the claim in fiscal 2007.
“After weighing the costs, risks and business distractions associated with continued litigation of this matter against the potential benefit, it became clear that it was in the financial best interests of the company and its shareholders to settle and move on,” said David Johnson, VP and CFO at Johnson Outdoors.
Don Hildebrand, VP And CFO of Confluence Holdings said, “This dispute has been going on for quite sometime. From a financial and distraction stand point, it was tim
