Catalytica Energy Systems Inc.
(Mountain View, CA) announced that it has reached a $3.0 million cash settlement with AGC Manufacturing Services Inc. and AGC Project Development Inc. to be paid over a 22-month period in connection with claims filed by AGC against certain technology manufactured by Catalytica Energy Systems.
The claims, which were previously identified by the company in its filings
with the Securities and Exchange Commission, had arisen out of a dispute concerning the interpretation of a collaborative agreement, dated November 2, 1993, between Catalytic Inc., Catalytica Energy Systems' former parent company, and AGC. Under the terms of the settlement agreement, all claims will be dismissed without presumption or admission of any liability or wrongdoing by either party.
"Settling this matter has favorably resolved a previously unknown risk factor, and helps to protect us against future claims of ownership in our Xonon technology," stated Craig Kitchen, president and CEO of Catalytica
Energy Systems. "We are pleased to have brought this issue to a close so that we can continue to focus our energies on our business."