Polaris Software Lab Ltd has agreed to an out-of court settlement of $6,00,000 (about Rs 2.4 crore) with US-based Data Inc.
According to information provided by Polaris to the stock exchange, “the said case was there in a US Court for trial on November 26, 2007. On the said day, the plaintiffs agreed to withdraw all their claims on a payment of $6,00,000 to which Polaris agreed. The Attorney of both parties have been directed to settle the terms of the payment and other modus operandi. Therefore, the case has ended in a compromise mode on November 26, 2007.â€Â
According to Mr R. Srikanth, Chief Financial Officer, Polaris, the company has been asked by the US Court to pay this amount to Data Inc in the next six months.
Earlier, Mr Arun Verma, President of New Jersey-based Data Inc, had filed this lawsuit against Polaris in 2000 with regard to an acquisition agreement signed by the two parties.
According to the agreement, Polaris had expressed interest to buy Data Inc for $21 million (about Rs 84 crore) in cash and stock. Should the acquisition not go through, it was to pay Data Inc $1,00,000 (about Rs 40 lakh) towards breach of contract.
Polaris eventually did not buy out Data Inc, which led to the latter suing it for breach of contract and fraud. A statement issued by Mr Verma at that time said Data Inc would sue Polaris for over $50 million, beyond the originally negotiated price of $1,00,000. Source: thehindubusinessline
