3D Systems Will Challenge Arbitration Decision from 2011 Acquisition

3D Systems (NYSE:DDD) has announced that a decision has been reached from the private arbitration dispute which arose from the company’s acquisition of Print3D Corporation in 2011. 3D Systems has decided to challenge the decision in federal court.
According to the press release:

On August 23, 2013, a former Company employee filed a lawsuit against the Company in the United States District Court for the District of Hawaii, alleging several causes of action related to the acquisition of Print3D Corporation (of which the former employee was a 50% shareholder). The lawsuit alleges that the Company breached a purchase agreement in order to avoid paying the former employee additional monies pursuant to earn out provisions in the agreement. The lawsuit was transferred to the District Court for the Western District of North Carolina, which court compelled arbitration. The arbitration took place in June 2015 and on October 16, 2015, the arbitrator issued an award in favor of the former employee with respect to certain alleged breaches of contract and implied covenants by the Company. The arbitrator found that the Company did not commit fraud or make any negligent misrepresentations to the former employee.
Pursuant to the arbitral award, the Company is to pay approximately $11.3 million which includes actual damages of $7.3 million, fees and expenses of $2.3 million and prejudgment interest of $1.7 million.

 
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