Benzinga | Dec 4, 2020 08:07AM EST

Pioneer Power Announces Conclusive Settlement With Myers Power Products

FORT LEE, N.J., Dec. 4, 2020 /PRNewswire/ -- Pioneer Power Solutions, Inc. (NASDAQ:PPSI) ("Pioneer Power" or the "Company"), a company engaged in the manufacture, sale and service of electrical transmission, distribution and on-site power generation equipment, today announced that it has finalized a conclusive settlement with Myers Power Products, Inc. ("Myers"), a specialty electrical products manufacturer.

As previously disclosed, in January of 2016, Myers filed suit with the Superior Court of the State of California, County of Los Angeles, against Pioneer Power, Pioneer Custom Electrical Products Corp. ("PCEP") and two PCEP employees who are former employees of Myers, alleging, among other things, that Pioneer Power wrongly used and retained confidential business information of Myers. Myers obtained two preliminary injunctions that, among other things, prohibited Pioneer Power from distributing a one-time special cash dividend to its shareholders and pursuing certain strategic transactions. As part of the settlement, these injunctions were dissolved, and all litigation and appeals related to the action have been dismissed with prejudice. The parties executed full releases of all known and unknown claims, thereby eliminating all such restrictions on Pioneer Power. Terms of the settlement were not disclosed.

"Putting this situation behind us removes certain roadblocks and impediments to Pioneer's growth ambitions," commented Nathan Mazurek, Pioneer Power's Chief Executive Officer. "Nevertheless, even while navigating this legal challenge, management has been laying the groundwork for the next phase of Pioneer's evolution, specifically focused on the cleantech space where Pioneer already has existing products and services that address this market. Concurrently, we are evaluating other avenues to increase shareholder value, including dividends, share buybacks and divesting non-core assets. We are glad to put this matter behind us and intend to accelerate value creation efforts."