After the Supreme Court of Pennsylvania affirmed a March 2004 ruling that found Cybex International, Inc. owed approximately $2.5 million in its case against Kirila, et al. late last month, the company filed a Petition for Allowance of Appeal. The Court refused to hear the appeal, thus bringing to an end this series of litigation. The company is discussing with plaintiffs counsel the amount of post-judgment interest to be added to the judgment, plus any related costs, but believes the total amount due will be covered by litigation reserves and so should not result in a charge to earnings.
In happier news for Cybex, the company plans to build a new manufacturing facility in Owatonna, Minn. The company found itself needing a new facility after sustaining a 15% growth rate over the last four years. Plans include building a 340,000 square foot facility located on 36 acres of property in Owatonna that will increase manufacturing capacity. Ground is scheduled to be broken for the new building by early September, and CYBEX is expected to move into the building in July 2007.
