Outdoor Holding Company (OHC) , the owner of GunBroker.com, an online marketplace for firearms, hunting and related products, has entered into a settlement agreement with Innovative Computer Professionals, Inc., d/b/a Digital Cash Processing (DCP), reportedly resolving the previously disclosed litigation pending in the U.S. District Court for the District of Minnesota.
Under the terms of the agreement, the company said it will pay $4.4 million to settle the matter in full and final settlement. Upon payment, the parties are expected to file a dismissal with prejudice. The agreement is said to include customary mutual releases but does not release certain non-affiliate third-party contractors.
The company said this settlement does not constitute an admission of liability or wrongdoing by the Company or its subsidiary.
“After careful evaluation, the company’s Board of Directors determined that resolving the matter at this stage eliminates ongoing uncertainty and substantial future legal costs,” the company said in a media release discussing the matter. “While the company was prepared to continue defending the case, further litigation would have required significant time, expense, and executive attention.”
By bringing the matter to a close, the company reportedly believes the settlement eliminates uncertainty and allows its leadership team to devote its full focus to operational execution, strategic initiatives, and long-term value creation.
“We have spent a lot of time, energy, and effort resolving legacy disputes, which has been a distraction from our core mission,” said Steve Urvan, chairman and CEO, Outdoor Holding Company. “While we were prepared to vigorously defend these claims through trial, removing the distraction and uncertainty and ending the substantial associated legal expense is in the company’s best interest. Reaching this resolution allows us to dedicate our time and resources to areas that improve shareholder value: streamlining operations, reducing transaction friction, strategic innovation, and growth.”
The company said it expects to record a one-time charge of approximately $4.4 million in the current quarter, the impact of which will be partially offset by a reduction in budgeted operational legal expense over the next several years. The settlement is not expected to have a material impact on the company’s liquidity, capital resources, or ongoing operations.
Image courtesy Outdoor Holding Company
