Johnson Outdoors Inc. has received a $3.5 million settlement resolving a claim with its insurance carriers that will contribute approximately 22 cents per diluted share in positive earnings in the current fiscal year.
As a result of the settlement, the court case against the company's insurers will be dismissed.
JOUT said the settlement dated back to a lawsuit it filed against its insurers in May 2005 to seek coverage related to an intellectual property dispute between the company and one of its competitors, which was eventually settled.
JOUT did not provide further details, but as of mid-December, the company was still litigating a claim against its insurers to recover a $4.4 million settlement payment and $1.3 million in legal expenses it incurred in May 2007 to settle a long-stranding IP dispute with Confluence Watersports, according to JOUT’s most recent 10K.
