Jury Verdict Rendered Against NL and Certain Officers and Directors
21 Juli 2009 - 12:30AM
PR Newswire (US)
DALLAS, July 20 /PRNewswire-FirstCall/ -- On Friday, July 17, 2009,
a Dallas County jury reached a verdict and awarded damages to
former minority shareholders of NL Environmental Management
Services, Inc. (EMS), an NL Industries, Inc. subsidiary. EMS was
established in 1998 with NL contributing $100 million of assets to
EMS to pay for costs related to $100 million of NL environmental
liabilities assumed by EMS, and the minority stockholders purchased
their stock in EMS for $317,000. NL remained liable to the extent
the $100 million was insufficient to fund the liabilities. The suit
arises out of the exercise by former minority shareholders of their
contractual right to sell their interest in EMS back to NL in 2005
and their dispute of values for their interest in the subsidiary
determined in accordance with the governing agreement between NL
and the minority shareholders. The dispute centers primarily on the
value of certain assets of the subsidiary and related liabilities
at the time of the exercise of their sale rights. Rather than
utilize independent third parties, whose findings would have been
binding on all parties, to resolve the valuation issues as required
by the provisions of the governing agreement, the minority
shareholders pursued litigation with a jury trial in the hope of
achieving a more favorable outcome. NL believes the facts and
evidence do not support the verdict in the case. NL continues to
believe the claims of the plaintiffs are without merit and are
subject to certain affirmative defenses and counterclaims. NL plans
to appeal the verdict and will continue to vigorously defend this
matter and expects the jury verdict will be set aside. DATASOURCE:
NL Industries, Inc. CONTACT: Gregory M. Swalwell, Vice President of
Finance and Chief Financial Officer of NL Industries, Inc.,
+1-972-233-1700 Web Site: http://www.nl-ind.com/
Copyright