Cybex International announced that a judgment has been entered with respect to the previously disclosed jury verdict in the litigation, Kirila, et al v. Cybex International, Inc., et al. Cybex recorded a reserve in 2001 with respect to the original jury verdict in this matter, which it believes remains adequate.
The judgment accordingly will not affect first quarter 2004 results. Cybex plans to announce first quarter results on or about April 22, 2004 and expects to report a profit for the quarter.
The judgment awarded in the Kirila litigation was comprised of the original jury verdict amount of $872,000, prejudgment interest on the judgment of $369,000, a statutory penalty under the Pennsylvania Wage Payment and Collection Law of $218,000 and attorneys fees of $993,783, for a total judgment of $2,452,783. Cybex intends to vigorously pursue an appeal of the judgment in this matter in its entirety, including the posting of the required bond. While Cybex believes that the existing reserve remains adequate, there is no assurance that the ultimate liability will not exceed the reserve. No payments to the plaintiffs will be required with respect to the judgment until the end of the appeal process, which may take between 12 to 24 months.
